Washington, D.C. — A District of Columbia-based property company has filed a federal lawsuit against Société Générale Financial Corp., alleging breach of contract over a $29 million refinancing loan agreement. The complaint, filed Tuesday in the U.S. District Court for the District of Columbia, centers around what the plaintiff describes as a wrongful refusal by the bank to fund a commercial mortgage-backed securities (CMBS) loan.
The DC Co. lawsuit Société Générale $29M loan stems from a May 2024 agreement in which 1515 14th Street LLC claims Société Générale committed to providing financing to refinance an existing mortgage on its property located at 1515-1525 14th Street NW — a site that includes the Whitman Walker Clinic as a major tenant.
According to the lawsuit, the parties executed a binding term sheet for the loan, which was set to close before the original mortgage’s July 31, 2024, maturity date. The property owner alleges that the term sheet did not require the bank to secure a secondary market buyer as a condition of closing.
However, 1515 14th Street LLC asserts that Société Générale had no intention of funding the loan unless it could confirm favorable terms for securitizing and selling the loan in the secondary market — a requirement that was never disclosed. The complaint accuses the bank of acting “recklessly and wantonly” by agreeing to the deal despite this undisclosed condition.
The property owner further claims to have fulfilled all obligations under the term sheet, including payment of a $10,000 origination fee and a $75,000 good faith deposit. Nevertheless, before the anticipated closing, Société Générale reportedly determined it could not find a suitable buyer for the loan in the secondary market and subsequently opted not to proceed with funding.
The plaintiff alleges that this refusal breached the agreed-upon terms and caused significant financial harm. A termination letter sent by Société Générale in September 2024 stated the bank would retain the deposit and sought additional fees, which the property owner has refused to pay or acknowledge.
1515 14th Street LLC is seeking at least $800,000 in damages, along with additional compensation to be determined by the court.
The lawsuit — 1515 14th Street LLC v. Société Générale Financial Corp., Case No. 1:25-cv-02355 — is currently pending in the U.S. District Court for the District of Columbia. The plaintiff is represented by attorney S. Hayes Edwards Jr. of Lerch Early & Brewer Chtd.
Neither Société Générale nor counsel for 1515 14th Street responded to requests for comment at the time of this release.
