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Return to Lender: Week of Feb. 15, 2024
- Portland, OR’s third-largest office building, Montgomery Park, has sold to its creditor, Natixis, for $37.7 million in a foreclosure auction, according to published reports. In 2019, the property traded for $255 million. Natixis had filed a notice of default on nearly $150 million in debt tied to the 756,000-square-foot property last September.
- A $95-million nonperforming loan backing an office property at 180 Grand Ave. in Oakland, CA is being marketed for sale, the San Francisco Chronicle reported. The property is currently 72% occupied, down from 95% when Oakland’s Harvest Partners joined forces with KKR—which has since sold its stake to AXA Investment Managers—to purchase the 15-story tower for $119 million. JLL has the listing.
- Mosser Cos. has defaulted on an $88-million loan against 12 apartment properties totaling 459 units in San Francisco, Trepp reported. An unknown lender provided the financing in 2018. When the financing was originated, the apartment properties were 94% occupied and valued at $154 million, but are now at 82% occupancy. Cushman & Wakefield was hired to offer the debt.
- The SoHo Portfolio loan ($76.5MM| 8.0% of COMM 2015-DC1) transferred to special servicing and loan payments are now 30 days delinquent as of the February remittance, reported Morningstar. Located in Manhattan’s SoHo neighborhood, the portfolio had been underperforming since issuance due to tenant rollover and increased real estate taxes, yet occupancy improved to 100% at year-end 2023 from 72% in 2022 and 33% in 2021 after several vacancies were backfilled.
- Toy Real Estate Co. has fallen behind in payments on a loan tied to 604 Mission St., a downtown San Francisco office property the firm acquired for $29 million in 2018. The San Francisco Business Times reported that an affiliate of the San Francisco investor was served a notice of default for an $18.75-million loan tied to the 26,794-square-foot 604 Mission St. site on Feb. 12, per public records. Toy assumed the loan from seller Market Real Estate Partners when it acquired the property in 2018.
- The Texas-based owners of the Tri-County Mall have defaulted on their $28-million loan from Reef Private Credit LLC, sending the property into foreclosure. However, the Cincinnati Business Courier reported that the owners aren’t ready to step away from their proposed $1-billion redevelopment of the site, known as Artisan Village, and are fighting to retain control of the property.
- The lender behind the two-year-old Holiday Inn Express in D.C.’s Mount Vernon Triangle has asked a federal court to reject a bankruptcy case that averted a foreclosure sale just before Alex Cooper Auctioneers was set to open bidding, reported the Washington Business Journal. SSHCOF II Washington DC LLC, an affiliate of Atlanta’s Peachtree Group, filed a motion Friday seeking to dismiss the Chapter 11 involuntary bankruptcy case, which was filed two days earlier by one of the hotel’s creditors, Welch Family Limited Partnership Nine.
- Morningstar reported that a modification of the $290-million New York Hospitality Portfolio loan (UBSCM 2018-NYCH) is imminent. The borrower has agreed to the terms of a nine-month maturity extension. The loan, backed by seven extended-stay hotels located throughout Manhattan, was transferred to special servicing for the second time in October 2023 due to imminent maturity default. A previous loan modification in 2021 extended the maturity date to February 2024 in exchange for a $10-million paydown of the debt. Also, as part of the 2021 workout, the mezzanine lender foreclosed on the portfolio and assumed obligations to the loan.
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