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Return to Lender: Week of May 16, 2024
- A prominent office building in Houston’s Galleria area that was designed by architect I.M. Pei is being put up for sale as a result of a Chapter 11 bankruptcy filing, reported the Houston Business Journal. Hilco Real Estate Sales has set a deadline of June 14 for bids to be submitted for the building at 2425 W. Loop S. The U.S. Bankruptcy Court for the Southern District of Texas ordered Hilco to conduct the sale after Galleria 2425 Owner LLC, an entity connected to Houston-based Jetall, filed for Chapter 11 bankruptcy protection in December.
- The Holiday Inn Manhattan View ($17.4 million | COMM 2015-CR23) liquidated this month, resulting in a total loss, Morningstar reported. The Long Island City Hotel had been scheduled to mature at the onset of COVID; it moved to special servicing in February 2020 and had been there ever since. The hotel securing the loan closed during the pandemic, lost its flag and never reopened.
- Morningstar said the liquidation of 1740 Broadway ($308 million | BWAY 2015-1740) was reflected in this month’s remittance. The $190.8-million loss on the Manhattan office property wiped out everything from class B down the stack and resulted in roughly a 25% loss to class A.
- Also in New York, Equitable Plaza ($87.2 million | 20.4% of COMM 2014-UBS3) has transferred to the special servicer after the borrower stated it will be unable to pay off the loan by its June 2024 maturity, according to Morningstar. Occupancy, which was 86% at issuance, has been declining at the Midtown Manhattan office property, and was most recently reported to 57% as of September 2023.
- The Denver Business Journal reported that Denver District Court Judge J Eric Elliff on Monday denied the request of the owners of Zeppelin Station, a food hall and office building, for a longstanding Denver company to become receiver managing the four-story building at 3501 Wazee St. Instead, the court kept The Stapleton Group, the choice of lender Wells Fargo, to operate the high-profile property. The Stapleton Group is authorized by the court to take any action it “deems reasonable and appropriate” to operate the 102,000-square-foot building and preserve its value as collateral for a $32-million loan that Rino Tod LLC, a subsidiary of Denver-based Zeppelin Development that owns Zeppelin Station, took out in 2019.
- The City Club Apartments in the Crossroads Arts District of Kansas City, MO has been put under a limited receivership after its previous owner indicated that it would abandon the luxury complex amid reported defaults on different financial obligations, according to the Kansas City Business Journal. The 283-unit community opened in 2020 at 1989 Main St., along the streetcar route. But more recently, developer City Club Apartments LLC told the holder of an $80-million loan secured by the apartments that it no longer could operate them and would be “walking away.”
- ◦Financing
