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Return to Lender: Week of Dec. 14, 2023
- Westway One, an Irving, TX office property that serves as the headquarters of both Pei Wei Asian Diner LLC and Chuck E. Cheese parent company CEC Entertainment LLC, found a buyer to take it out of bankruptcy. Irving Westway One LLC, a limited liability company tied to Dallas-based Good Signature Management LLC, recently agreed to purchase 1707 Market Place Blvd. for $12.5 million, the Dallas Business Journal reported. The seller, Houston-based Hartman SPE LLC, filed for Chapter 11 bankruptcy protection in September. Hartman SPE has been selling office and retail properties as its parent company, Silver Star Properties REIT Inc., turned its focus to investing in self-storage facilities.
- A Southern California hotel built by Portland developer Walter Bowen is slated for a foreclosure sale, the Portland Business Journal reported. Bowen’s BDC/Anaheim LLC defaulted on a $127-million loan tied to the Viv Hotel near Disneyland in Anaheim. Including fees, legal costs and penalties, the lender, 3650 REIT Anaheim, is owed approximately $145 million, according to the Oregonian, which didn’t say whether the foreclosure sale had a scheduled date.
- Industry Denver, a coworking and shared office space located at 3001 Brighton Blvd., has defaulted on two loans, according to a recent lawsuit filed on Dec. 5 in Denver District Court, resulting in the court appointing a receiver to take control of the property. American General Life Insurance Company and American Home Insurance Company, both subsidiaries of New York-based American International Group Inc., are suing the current ownership of Industry Denver, New York-based Clarion Partners. American General Life Insurance Company lent the Industry’s landlord $20.32 million in 2016, while American Home Insurance Company lent $11.68 million in 2016. Both loans matured on Nov. 1, and the lenders are still owed $28.67 million, according to the Denver Business Journal.
- Morningstar reported that a November 2023 appraisal for Fashion Outlets of Niagara Falls ($85.6 million | 5.9% of COMM 2010-C1) valued the property at $98.2 million, a 48% decline from its last valuation of $190.0 million in August 2020, but above the outstanding loan balance. The loan transferred to special servicing in October 2023 for maturity default.
- 25 W. 45th St. ($64.6 million | 15.5% of COMM 2014-CR15) was transferred to special servicing this month, ahead of its January 2024 maturity, reported Morningstar. The New York office property’s occupancy was last reported at 70% in June 2023 and the 2022 DSCR was below breakeven at 0.98x. A portion of the space was formerly leased to WeWork but the tenant did not commence lease payments until later than was agreed upon and ultimately vacated in 2021.
- New York City-based Bridgeton was served a notice of default for 995 Market St., a move that could position the investment firm’s lenders to take control of the office building in San Francisco’s Mid-Market district. The notice of default was about four months after Bridgeton told LStar Capital, its lender, that it would not be making any more payments on its loan for the building, reported the San Francisco Business Times. Bridgeton is roughly $2.85 million behind on payments as of Dec. 7.
- Also in San Francisco, 140 Second St. ($19.6 million | 2.7% of COMM 2014-CR19 | CMBX.8) has transferred to special servicing for maturity default per the December 2023 remittance data. The mixed-use property’s occupancy dropped precipitously in 2023, reported at 32% in Q3 2023 from 99% in Q4 2022, according to Morningstar.
- ◦Financing
