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Return to Lender: Week of Nov. 9, 2023
- The Atlanta Business Chronicle reported that a lender now owns one of Midtown’s prime development sites. Benmark Atlanta Lender LLC took back the four-acre Opus Place site during a foreclosure auction earlier this week in which it was the first and only bidder. The credit bid of $40 million represented the amount Benmark is owed from the site’s previous owner, Olympia Heights Management.
- Also in Atlanta, the Business Chronicle reported that eight more properties in Newport’s South Downtown portfolio are headed for foreclosure in December. The portfolio consists of buildings and lots at Peachtree, Broad and Forsyth streets, and is the second round of Newport holdings to go before an auction, bringing the total to 18.
- In the Boston metro area, a Lakeville, MA country club and its 18-hole golf course are headed to auction in connection with the property’s foreclosure. The 162-acre LeBaron Hills Country Club will be up for sale on Dec. 6 at an onsite proceeding. The property is owned by a limited liability company affiliated with the Will family, owners of A.A. Will Corp., a Stoughton, MA-based construction firm, according to the Boston Business Journal.
- The borrower on CSWF 2018-TOP, backing office properties in Charlotte, has been served with a written ground lease termination notice, according to Morningstar. The sole loan in the pool went into special servicing this past August. CSWF 2018-TOP originally carried a balance of $530 million, but this fell to $51.5 million after the releases and paydowns of 12 of the original 15 properties collateralizing it. Occupancy at one of the three remaining properties, 200 North College, has fallen to 8% following the departure of Bank of America.
- Another commercial property in downtown San Francisco may be headed for receivership, according to the San Francisco Business Times. In a complaint filed against an affiliate of Dallas-based investor Canyon Partners in San Francisco Superior Court Tuesday, Pasadena, CA-based East West Bank alleged Canyon had defaulted on a $42-million loan for 1128 Market St. in San Francisco in May, and asked that the property be placed into the hands of a receiver.
- The three largest CMBS loans to resolve for a loss in October were all backed by retail properties, Trepp reported. The largest was the $106.3-million Mall at Tuttle Crossing loan, backed by about 385,000 square feet of inline space within a 1.1-million-square-foot mall in Dublin, OH. The loan has been in special servicing since July 2020. The $22.3-million Chatham Village loan, backed by an open-air retail center on Chicago’s South Side, was the second largest loan to resolve for a loss in October. The third largest was the $18-million 415W. 13th St. loan. The collateral is an 11,862-square-foot, single-tenant commercial condominium on Manhattan’s West Side. The sole tenant is AllSaints USA, Ltd., a seller of jackets and sweaters.
- As one consequence of WeWork’s Nov. 6 bankruptcy filing, Fitch Ratings has downgraded its Long-Term Issuer Default Rating (IDR) to “D” from “RD.” There was approximately $4.2 billion in total debt (including accrued interest) outstanding as of the petition date., and Fitch said close to $490 million of third-lien and unsecured bond debt are expected to be extinguished. “The mismatch between the long-term nature of the company’s leases and the short-term agreements with its customers is a fundamental flaw of the business model.” Fitch commented.
- ◦Financing
