National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Return to Lender: Week of April 4, 2024
- PCCP acquired the $111-million nonperforming senior loan on the office and retail building at 462 Broadway in Lower Manhattan from Areal Capital, according to published reports. The note was scheduled to mature this month and went on the market in January after the borrower, an affiliate of Meringoff Properties, defaulted on the debt. PCCP holds a $38.7-million B note on the property.
- One of the Philadelphia Navy Yard’s signature office properties is scheduled to be sold at a sheriff’s sale in June, reported the Philadelphia Business Journal. The 207,779-square-foot office building at 5 Crescent Drive will go up for public auction on Bid4Assets on June 4 to satisfy a foreclosure judgment against owner Korea Investment Management Co. Ltd., which paid a record $628 per square foot in acquiring the property for $130.5 million from Liberty Property Trust in 2018. Goldman Sachs originated an $85-million acquisition loan, which was transferred to special servicing in 2022.
- Luxury retailer Bvlgari will vacate One Union Square ($50.0 million | 68.7% of CGCMT 2013-GC17 | CMBX.7) in San Francisco, Morningstar reported. The loan backed by the building, also known as the Bvlgari Building, went to special servicing in October 2023 after failing to pay off at maturity. Since then, WeWork rejected its lease, dropping occupancy to a servicer-estimated 59.5%. Bulgari accounts for 38.3% of the space on a lease through January 2025. Servicer commentary notes that foreclosure proceedings have been initiated.
- Wings Financial Credit Union is asking for a court-appointed receiver to take over the 8200 Tower within the Normandale Lake Office Park complex in Bloomington, MN after the entity controlling the building failed to make $2 million in real estate tax payments in 2023, reported the Minneapolis/St. Paul Business Journal. Locally based Wings alleges that Liberty 8200 Normandale LLC, which signed a 99-year lease to the building, failed to pay $2,013,208 in real estate taxes in 2023, causing it to default on the $41.3-million mortgage it took out from Wings in 2022.
- The Sacramento Business Journal reported that a lawsuit in Sacramento County Superior Court seeks to put the Cathedral Building in Downtown Sacramento into receivership. According to the suit, filed March 29 by attorneys representing lender Directed Capital, the current owner, Clippinger Investment Properties, is more than $14 million in arrears over a 2018 loan for $11 million. Clippinger filed for bankrutpcy in 2022.
- Phoenix Investors of Milwaukee has sold a former North Carolina site of a shuttered furniture company for $7.2 million, the Milwaukee Business Journal reported. High Point, NC furniture company Theodore Alexander has bought the former site of bankrupt United Furniture in Trinity, WI for $7.2 million. The site was among several put on the market after United Furniture, also known by its Lane Furniture brand, shut down overnight in November 2022 . Phoenix Investors, which specializes in reselling and repurposing industrial properties, bought most of the United Furniture sites out of bankruptcy.
- ◦Sale/Acquisition
