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Return to Lender: Week of Sept. 28, 2023
- Marathon Asset Management took control of 263 W. 34th St., a newly developed Manhattan office property, in a foreclosure auction. The investment fund paid $16.5 million for the property, which cost a reported $90 million to develop. Marathon was one of developer Churchill Real Estate’s creditors, according to published reports. The property had accrued $65 million in outstanding liens as of this past May.
- Goldman Sachs Urban Investment Group paid $10 million at auction to retain control of Empire Outlets, New York City’s first and only outlet mall. The sale ends a nearly two-year foreclosure process and moves original operator BFC Partners out of the picture. The 340,000-square-foot mall on Staten Island opened in 2019 and went into foreclosure in 2022.
- The $325.4-million Brookwood Office Portfolio loan, JPMCC 2019-BKWD, was transferred to the special servicer earlier this month for maturity default, reported Morningstar. The loan has not met the 11.5% debt yield threshold required for an extension through the loan’s final maturity date in September 2024. A modification is expected to be discussed and the transfer should be reflected by next month’s remittance.
- Kroll Bond Rating Agency (KBRA) said the delinquency rate among KBRA-rated U.S. CMBS ticked up nine basis points to 4.25%, while the total delinquent and specially serviced loan rate experienced a sharper rise of 30 bps to reach 6.75%. Office experienced the highest distress rate increase with 21 newly distressed loans, the majority of which were driven by imminent or actual maturity defaults. Among the largest were the State Farm Portfolio ($383.5 million in four conduits), DUMBO Heights Portfolio ($180 million in CGCMT 2018-C6 and Benchmark 2018-B8), and 1615 L Street ($134.3 million in JPMBB 2013-C15 and JPMCC 2013-C16).
- Houston-based Silver Star Properties REIT, Inc. said indirect subsidiary Hartman SPE, LLC has filed a voluntary petition under Chapter 11 of the Bankruptcy Code. Silver Star is transitioning into a pure-play self-storage REIT; Hartman SPE owns legacy office, retail and industrial properties. The bankruptcy filing will allow the SPE to conduct an orderly sale of its assets to pay its undisputed creditors in full, complete the refinance of its maturing senior indebtedness and maximize capital available for Silver Star’s redeployment into the self-storage asset class.
- Fitch Ratings has affirmed the ratings and revised the Rating Outlooks on all classes of CSMC 2020-WEST, Commercial Mortgage Pass-Through Certificates, Series 2020-WEST to Negative from Stable. The certificates represent the beneficial interests in the trust loan portion of a $400-million, 10-year, fixed-rate, interest-only mortgage loan secured by the fee simple and leasehold interests in The Westchester, an 813,979-square-foot regional mall located in White Plains, NY. The Negative Rating Outlooks reflect slower-than-expected recovery of performance from the pandemic. Although Fitch expects property cash flow to continue to recover, downgrades are possible if more significant progress isn’t made over the next year.
- CRED iQ Research has identified Houma Shopping Center in Houma, LA as a distressed loan due to non-performing matured balloon/balloon payment/maturity default. The 176,000-square-foot shopping center was built in 1995, and its debt service coverage ratio has fallen due to tenant rollover.
- ◦Sale/Acquisition
