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Return to Lender: Week of Feb. 29, 2024
- The Foundry, a 50-year-old office building located at 1055 Thomas Jefferson St. NW in Washington, DC’s Georgetown neighborhood and owned by JBG/Foundry Office LLC, is to be auctioned during a foreclosure sale scheduled for April 11 at the D.C. office of Alex Cooper Auctioneers, reported the Washington Business Journal. The notice reflects $58 million owed on the note, issued by JPMorgan Chase Bank. JBG Smith Properties, whose predecessor acquired the property a decade ago as part of a joint venture with CBRE Global Investment Partners, has excluded it from occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in its investor package.
- Ashkenazy Acquisition Corp.’s lenders at One Union Square in San Francisco are moving to take control of the building some four months after the New York-based investor and partner Brookfield Properties failed to repay a $50-million mortgage on the property. US Bank is pursuing a judicial foreclosure of the 42,300-square-foot property at 200-212 Stockton St. and 172-180 Geary St., reported the San Francisco Business Times.
- Morningstar said that February reporting showed an unusual amount of special servicing activity in the BBCMS 2023-C19 transaction. Five loans packaged as part of the securitization transferred during this cycle. They include 2 Executive ($54.5 million | 6.4% of the deal balance), backed by a Fort Lee, NJ mixed-use property; Holiday Inn Express – Hesperia ($11.2 million | 1.3%), a San Bernardino-area hotel that transferred for delinquency; Pennbrook Portfolio ($7.6 million | 0.9%), a portfolio of small Philadelphia multifamily properties that has been delinquent since October; 350 5th Street & 372 Baltic Street ($6.3 million | 0.7%), a pair of Brooklyn multifamily properties that have fallen delinquent despite reporting 100% occupancy as of September 2023; and 566 7th Street ($5.9 million | 0.7%), another fully occupied Brooklyn apartment property that’s been delinquent for several months.
- A $58.5-million loan backed by Alliance HP’s 276,572-square-foot One Financial Plaza office tower in Fort Lauderdale transferred to special servicing in February due to maturity default, CRED iQ reported. The floating-rate, interest-only loan was originated by Varde Partners in September 2019 and securitized 19 months later as part of the $927.9-million VMC Finance 2021-FL4 CLO.
- Patrick Henry Mall ($40.3 million | 6.7% of WFCM 2015-SG1 | CMBX.9) was transferred to special servicing this month after the guarantor filed for Chapter 11 bankruptcy. Morningstar previously had the loan on its Watchlist due to subpar financials. Despite strong occupancy, last reported at 95% in September 2023, the net cash flow continues to lag issuance. The collateral includes 432,401 square feet of a 716,558-square-foot regional mall in Newport News, VA, anchored by non-collateral tenants Macy’s and JC Penney.
- San Francisco-based Hemant Investments LLC fell behind on more than $6 million in loan payments for the former Quality Inn at 8471 Enterprise Way in Oakland and has been served with a notice of default, the San Francisco Business Times reported. The owner had taken out a loan in March 2022 for $5.8 million that came due in October 2023 and had accrued more than $76,000 in interest. The default notice came after the hotel was selected to be transformed into more than 100 units of affordable housing through Project Homekey, a statewide effort.
- The buyer of the former Trump International Hotel on Pennsylvania Avenue in Washington, DC has defaulted on a $285-million loan, according to published reports. A partnership of Miami-based CGI Merchant Group and Hilton closed on the hotel leasehold for $375 million in 2022, rebranding it as Waldorf Astoria within a month of the close.
Read More News Stories About: Brookfield Properties, CBRE
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