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Return to Lender: Week of Jan. 9, 2025
- Jamestown LP has sold 731 Market St. in San Francisco to New York City-based Seven Equity Group for $15 million, offloading the building nearly two years after a $32.5-million loan backed by the property matured. The San Francisco Business Times reported that Capital One served Jamestown with a notice of default for the loan in July 2023, alleging the firm failed to repay close to $25.5 million of that debt when the loan matured in April of that year. After seeking to foreclose on 731 Market, Capital One reached an agreement with Jamestown to retire the debt. JLL’s San Francisco-based capital markets team represented Jamestown in the sale.
- San Francisco-based Blox Ventures bought the loan secured by 6001 Shellmound St., an eight-story, 109,333-square-foot office building in Emeryville, CA. The transaction positions the company to acquire the office property via a deed in lieu of foreclosure, according to the San Francisco Business Times. Current owner Sagard Real Estate, formerly EverWest Real Estate, purchased the property in 2017 for $33 million, taking out a $21.61-million loan that matured in December. Blox bought the loan for $6.8 million, a 68% discount at roughly $62 per square foot, from lender PNC Bank.
- 400 South Tryon, a 32-story, 587,000-square-foot building in uptown Charlotte, will be listed for public auction on Jan. 10, reported the Charlotte Business Journal. The auction will take place at 10:01 a.m. on the first floor of the Mecklenburg County Courthouse at 832 E. Fourth St. The auction follows foreclosure proceeding approval in Mecklenburg County Superior Court. The property is being sold “as is, where is,” and the auction will be held open for 10 days to allow for upset bids.
- The Washington Business Journal reported that Monday Properties has lost a seven-building office portfolio in Arlington, VA’s Rosslyn neighborhood, including the marquee two-building project known as The Towers, to Beacon Capital Partners. The forfeiture follows Monday’s 2023 default on loans tied to the portfolios. The Business Journal reported that it’s the highest-profile forfeit of office property in Greater Washington since the COVID-19 pandemic.
- Miami-based CGI Merchant Group is a month late on a loan payment for three office properties that are slated to be sold to a California-based corporation, according to the South Florida Business Journal. The CMBS loan, originated by Starwood Property Trust, still has an unpaid balance of more than $14.25 million and is set to mature on June 1, 2025. A subsidiary of Starwood Property, LNR Partners, was assigned as the loan’s special servicer. Properties backing the loan in West Palm Beach, Stuart and Lake Worth are part of a pending phased sale to California-based GBT Technologies.
- The Minnetonka, MN office building that until recently housed the headquarters to UnitedHealth Group Inc. has been put into receivership, the Minneapolis/St. Paul Business Journal reported. A Hennepin County District Court appointed CBRE’s John Boich as limited receiver of the 10-story office building, located at 9900 Bren Rd. E. Its landlord, an entity of New York-based LCN Capital Partners LP, faces the dual challenges of UnitedHealth’s decision not to renew its lease and a $47-million loan balance that reached maturity on Jan. 6. The insurer was the property’s sole tenant.
- Lenders Forethought Life Insurance Co. and Kookmin Bank are moving to foreclose on 3 E. 54th St., a Midtown Manhattan office property owned by Cohen Brothers Realty Corporation, according to Crain’s New York Business. Ownership owes an estimated $86.4 million on the 23% occupied property, with penalties included. In a statement, COO Steven Cherniak told Crain’s, “We are in the process of refinancing the mortgage on the property and intend to proceed with the current plan for redevelopment of the site.”
- A Baltimore City Circuit Court judge has approved receivership for One Calvert Plaza at the corner of Calvert and Baltimore streets despite a written plea from developer Brandon Chasen’s attorneys to halt the move, according to the Baltimore Business Journal. The court order is another blow to the developer and its downtown tower after Chasen Cos. was hit with a $28.9-million default judgment in November. The judgment was awarded after Chasen failed to keep up with payments on a nearly $34-million loan from Sandy Spring Bank intended to help convert the building to residential use.
- ◦Sale/Acquisition
- ◦Financing
