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Return to Lender: Week of April 18, 2024
- The 16-story 995 Market St. in San Francisco’s Mid-Market district is scheduled for public auction April 18, reported the San Francisco Business Times. A $45-million loan on the 90,500-square-foot office property went to special servicer LNR Partners after borrower Bridgeton informed the lender, LStar Capital, that it would not be making any more loan payments. Bridgeton acquired 995 Market in 2015 for $62 million.
- Also in San Francisco, the debt on the Parkmerced apartment complex has moved to special servicing, according to Morningstar. The total debt package includes $1.5 billion of securitized debt and $275 million of mezzanine debt. The borrower requested the transfer due to high vacancy and the loan’s looming maturity in December 2024. The most recent financials, from September 2023, reported 83% occupancy and a DSCR well below breakeven.
- The $258.4-million loan against Franklin Mills is back with the special servicer once again, reported Morningstar. Now known as Philadelphia Mills, the outlet mall in Northeast Philadelphia has been modified twice already, extending the maturity date each time and creating an A/B structure. The transfer comes ahead of its July 2024 extended maturity date. The loan was below breakeven in 2023 and has long been listed in Simon’s “Other Properties” category in its filings, according to Morningstar.
- 285 Madison Ave. in Midtown Manhattan has moved to special servicing in advance of its maturity next month. Morningstar said the $235-million securitized loan on the office property reported a 1.11x DSCR at year-end 2023 despite a 97% occupancy. There’s significant additional debt besides the trust debt with a $35-million B-Note, $120 million of senior mezzanine debt and $80 million of junior mezz.
- Fox River Mall, an Appleton, WI regional mall comprising 94.3% of the $136.6-million WFRBS 2011-C4, has transferred to special servicing ahead of its June 2024 maturity. The loan was previously modified in 2020 with a three-year extension. The mall’s 2022 net cash flow was up from the year prior but was still 19% below issuance, according to Morningstar. Occupancy was 91% in September 2023.
- A $107.4-million loan on Yorktown Center, a shopping center in the Chicago suburb of Lombard, IL, has transferred to special servicing after failing to pay off at maturity and the borrower requesting another extension, reported Morningstar. The loan had previously been modified in 2020 when its maturity was extended to March 2024. The mall’s net cash flow has not approached underwritten levels, although the servicer comments note there is an additional 17% of the space that’s been leased in addition to the reported 77% occupancy.
- Morningstar reported that a $60-million securitized loan backed by 211 Main St. in San Francisco has transferred to special servicing due to imminent maturity default. According to servicer commentary, an approval for a four-year maturity extension through April 2028 is in process. As of year-end 2023, occupancy was at 100% with a 2.68x DSCR, although the office property’s single tenant currently occupies only a portion of its leased space.
- ◦Sale/Acquisition
- ◦Financing
