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Return to Lender: Week of April 25, 2024
- Yellowstone Real Estate paid approximately $200 million for the distressed loan backed by a 603,928-square-foot office building at 1740 Broadway in Midtown Manhattan, Trepp reported. Special servicer Midland Loan Services was the seller. JLL brokered the deal. Acquired by Blackstone for $605 million in 2014, the tower was appraised at $175 million in 2021, and it’s currently 8.6% occupied.
- The New York Business Journal reported that a Manhattan luxury condominium development site where construction stalled has found a new owner. Victor Sigoura’s Legion Investment Group bought the property at 540 W. 21st St. in Chelsea for $87.4 million. The developer has entered a $55.8-million mortgage on the property with Deutsche Bank, arranged by Walker & Dunlop’s Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz and Sean Bastian. Casco Development Corp., the site’s previous owner, filed for bankruptcy in August.
- The Lanes, a 110-unit apartment property at 400 Florida Ave. NE in Washington, DC’s Union Market section, will be offered for sale at a May 23 foreclosure auction, reported Trepp. Alex Cooper Auctioneers is overseeing the sale. New York-based Ranger Properties completed the apartments last year, using $33.7 million of construction financing from EagleBank. The loan ultimately was increased to $39.5 million, but Ranger never paid it off. It was purchased by Srinivas Chavali in January.
- A $250-million CMBS loan secured by 25 Broadway, an early 20th century Manhattan office building recently vacated by WeWork, defaulted on its April maturity date and is now in special servicing, Trepp reported. The loan is comprised of two separate pieces that are significant portions of separate CMBS conduit packages.
- The $235-million CMBS loan on 225 and 233 Park Avenue South in Manhattan was sent to the special servicer for monetary term default, according to Morniongstar Credit. The transfer follows the decision by Meta Platforms to end its lease on 39% of the GLA in March 2024 upon paying a $33.0 million termination fee. The third-largest tenant, STV (20% of GLA), has its lease expiration in May. The Manhattan office property is also encumbered by $195 million of unsecuritized mezzanine debt.
- Per the April 2024 servicer commentary, the $130-million Nvidia Santa Clara loan has moved to special servicing, Morningstar Credit reported. Servicer commentary alludes to a non-monetary default that will likely be resolved quickly, most likely through a property sale. The loan, which closed in November 2023, is backed by six properties in Santa Clara, CA, which are 100% leased to Nvidia. There is also $50.5 million of mezzanine debt.
- Morningstar Credit reported that 760 & 800 Westchester Ave. in White Plains, NY ($92.8 million | WFCM 2015-NXS1, COMM 2015-PC1 & COMM 2015-DC1) has moved to special servicing. There’s no material servicer commentary, but the loan has hovered around a 1.00x DSCR for the past few years and faces maturity in November 2024. There’s also a $10-million mezzanine loan as part of the total financing on the office property.
- Laurel Corporate Center ($43.8 million | 8.3% of CSAIL 2016-C6) transferred to special servicing, Morningstar Credit reported. The portfolio comprises six suburban office properties located in Mount Laurel, NJ, near Philadelphia. The loan first fell delinquent in March 2024. Loan payments remain delinquent despite ending 2023 at a 2.40x DSCR and occupancy of 85%.
- The JMT Chicago Multi Portfolio loan ($42.5 million | 2.9% of BMARK 2021-B31 | CMBX.15) has moved to special servicing for non-monetary default, reported Morningstar Credit. Although the current servicer notes provide no color on the transfer, previous months noted that a cash trap was being sprung as the loan failed a debt yield hurdle. The loan has nonetheless stayed current and the April 2024 payment was made.
- A $40.4-million CMBS loan backed by Park Square Portland moved to special servicing after Regence BlueCross BlueShield vacated at the end of 2023. Morningstar Credit reported servicer commentary indicating that Regence accounted for 63.2% of the space. The loan has never previously been delinquent, but payments fell behind as of April.
- The Hilton Melbourne ($24.5 million | 2.3% of BMARK 2019-B11 | CMBX.13) “surprisingly” transferred to special servicing for imminent monetary default, according to Morningstar. This occurred despite a 2023 DSCR reported at 2.07x and revenue that was above the underwritten level. The loan backed by a Melbourne, FL lodging property had previously been in special servicing and was granted a forbearance during the pandemic. It was due to mature in June.
- The $19-million CMBS loan backed by 700 17th St. has moved to special servicing, reported Morningstar Credit. The collateral is a 182,505-square-foot office space in Denver. As of September 2023, occupancy was at 53% and the DSCR was just 0.03x.
- An Arlington, TX office park near Six Flags that was bought by a New York investor in 2021 could now face foreclosure, reported the Dallas Business Journal. Pinnacle Bank alleges Liberty Centerpoint LLC, an entity of New York-based Opal Holdings LLC, has defaulted on a $40-million loan the bank made in August 2021. Opal Holdings bought the renovated Centerpoint office park in Arlington from Boston-based Albany Road Real Estate Partners in 2021.
- ◦Sale/Acquisition
- ◦Financing
