
First reported by Eater DC earlier this week, speculation has quickly gained momentum that billionaire Elon Musk plans to purchase The Line, a notable hotel in Adams Morgan, when it goes up for foreclosure auction in New York on Thursday (23rd) morning.
UPDATE: Elon Musk has not purchased The Line
The auction was held on Thursday, January 23rd, as scheduled, and no alternative bids were made (including any from Elon Musk) aside from the starting price of the lender, meaning that ownership of the property goes to the lender, Acore Capital.
Why would Elon Musk buy The Line?
According to reports, Musk’s alleged plan to purchase The Line would give him a major commercial real estate foothold in the capital city, just 2.5 miles from the D.C. office of SpaceX, one of the several companies he has a leadership position in.
However, while the proximity to the SpaceX offices has provided little justification for the purchase, a more prevalent theory currently floating around the District is that Musk plans to purchase the 220-room financially struggling hotel and convert it into an exclusive social club, similar to Trump’s Mar-a-Lago resort in Palm Beach, Florida.
What is The Line D.C.?
The Line D.C. is (was) a trendy boutique hotel in the Adams Morgan neighborhood of Washington, D.C. that opened around seven years ago but has unfortunately gone into foreclosure after facing economic hardship following the COVID-19 pandemic.
Now The Line D.C. will be sold at a public auction on Thursday, January 23rd.
Despite the public nature of the auction suggesting anyone could make a winning bid, given Musk’s vast wealth, it is improbable that he would be outbid for the property if he is motivated to make the purchase.
What is the local sentiment about Elon Musk purchasing The Line?
In a word… disgruntled.
A growing movement in the Adams Morgan neighborhood has begun to publicly state the local community’s displeasure with Elon Musk’s reported plans to purchase The Line and convert it into a private social club.
An online petition has been created by residents to stop the sale to Musk, which already has nearly 2,000 signatures.
According to the petition, which can also be seen linked on printed flyers posted around the neighborhood, locals believe that Musk’s ownership and long-term plans for the Line Hotel DC would erode what once made the area so unique and appealing.
What will happen if Elon Musk buys the Line Hotel?
While there has not been any official statement from Musk himself at the moment, multiple reports suggest insiders close to Musk have stated he plans to close the space to the public and convert the hotel space into an exclusive resort-style social club.
Whether or not this would be an immediate transformation has yet to be confirmed.
Assuming that Elon Musk does purchase the Line Hotel and closes it to the public, it would be reasonable to think that the lack of public access to the hotel, as well as its crowd-drawing bar and restaurant, could reduce foot traffic in the area which could then in turn negatively impact nearby small businesses.