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National  + Distressed Assets  | 

Return to Lender: Week of Feb. 8, 2024

  • The Hilton Woodcliff Lake ($18.8 million | 2.5% of UBSCM 2017-C1) was sold at auction in February to a development group owned by Minnesota Vikings owner Zygi Wilf, reported Morningstar. Although the winning bid wasn’t disclosed, an article on NJ.com said the hotel will shut its doors later this month. The asset became REO in May 2022 and was last appraised for $22.5 million in March 2023. The liquidation will likely be reflected in the near term. 
  • Trepp reported that the receiver handling the Towne Mall in Elizabethtown, KY, has orchestrated the shopping center’s $9.27-million sale to local investor TDA Properties, a sale handled by Newmark. Spinoso Real Estate Group had been handling the 353,718-square-foot property since early last year, soon after it had defaulted on an $18.26-million mortgage. As a result of the sale, Macerich Co., which previously had owned it, recognized an $8.2-million gain from the loan’s extinguishment.  
  • The third Buffalo, NY-area terminal previously owned by bankrupt trucking company Yellow has been sold to a familiar buyer. Estes Express Lines paid $8.33 million for the terminal at 66 Milens Rd. in Tonawanda, less than a week after closing on the $5.55-million sale of one of Yellow’s two facilities in Williamsville, according to Buffalo Business First. Pittsburgh-based trucking company Pitt Ohio last month purchased the terminal at 6640 Transit Rd., paying $9.12 million for the other Williamsville facility. Pitt Ohio bought 13 Yellow terminals nationwide for a combined $51.3 million in bankruptcy auctions. 
  • All underlying loans in the JPMCC 2019-ICON transaction backed by a portfolio of multifamily properties on Manhattan’s Upper East Side have moved to special servicing after failing to pay off at maturity, Morningstar reported. The deal currently consists of 17 loans to the same sponsor, although none of the loans are crossed. A two-year extension is being pursued contingent upon the borrower providing “sufficient credit enhancement.” The total aggregate loan amount at issuance was $174.7 million, of which $144.7 million was securitized in the ICON deal. There has been a single loan repaid since issuance which reduced the total loan amount nominally.  
  • Nearly $60 million in debt backed by 1515 Market St. in Philadelphia was transferred to special servicing in December, adding the 20-story building to the growing list of distressed office properties surrounding City Hall. The building’s owner, Florida-based Accesso Partners, has a $59.4 million balance on the loan it took out to acquire 1515 Market for $85 million in 2014, the Philadelphia Business Journal reported. The loan, originated by JPMorgan Chase before being converted into a CMBS and sold to investors, is set to mature in January 2025. CWCapital is the special servicer for 1515 Market. 
  • The Dulles View office complex in Herndon, VA, has been returned to its lender after the owner defaulted on a $51-million CMBS loan last year, according to published reports. Landlord Gemini Rosemont purchased the 359,689-square-foot property in 2013 for $100 million and initially secured a $60-million loan, later collateralized as part of a $1.3-billion CMBS deal led by JPMorgan Chase and Wells Fargo. 
  • A move by the State Department of Budget and Management into 300 E Lombard could be delayed because the Baltimore office property is at risk of receivership, Morningstar reported, citing a report in the Baltimore Business Journal. The owners of the property—which accounts for $28.6 million, or 3.2% of WFCM 2015-C27—had secured a 10-year lease for 44,240 square feet, or roughly 20% of the GLA, according to the article. The Class A property has been in special servicing since March 2022 after the DSCR fell below breakeven. Occupancy was last reported at 57% in June 2023. 
  • The Grant Building, one of downtown Pittsburgh’s largest office towers, is facing possible foreclosure action as its main lender, Delaware-based Wilmington Trust, seeks a total claim of more than $37.8 million based on a 2017 mortgage of $38 million. Pittsburgh Business Times reported that Wilmington Trust filed a complaint seeking to foreclose against building owner McKnight Grant Building Associates LP, an affiliate of McKnight Realty Partners, in the Allegheny County Common Pleas Court. It  was triggered by one of the building’s biggest office tenants not renewing for a length of time to satisfy the contractual needs. 
  • A court receiver has seized control of an empty and neglected San Jose office building that’s delinquent on its loan, the Mercury News reported. The receivership status of the office building, located at 3100 N. First St., is part of a process that would shove the property into foreclosure. Santa Monica-based Vista Investment Group owns the building, which at one point was leased to Nio USA, a unit of a China-based maker of electric vehicles. Nio vacated the 99,400-square-foot building in October 2023. 
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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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