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Return to Lender: Week of July 3, 2024
- Silverstein Properties has taken title to the 9 Dekalb Ave. mixed-use building in Brooklyn, according to published reports. The developer acquired condominiums, rentals and retail at Brooklyn Tower for $672.6 million, New York City property records show. Earlier this year, it acquired a $424-million senior loan on the project from Otera Capital. Silverstein foreclosed on the 1,067-foot tower in Downtown Brooklyn earlier this year after its previous owner, JDS Development Group, defaulted on its $240-million mezzanine loan from Silverstein Capital Partners. An auction was slated for June 10, but JDS agreed to turn the property over in a deed-in-lieu of foreclosure.
- New York City-based TF Cornerstone Inc. has bought a majority of the debt on the historic Wanamaker building and is in negotiations to acquire the distressed Center City Philadelphia office property, reported the Philadelphia Business Journal. TF Cornerstone already owns the Macy’s department store space that occupies the first three floors of the building. The nine-floor office portion of 1300 Market St. has faced an uncertain future since it was placed in receivership in September as its debtholders pursue foreclosure to satisfy a $112-million unpaid mortgage balance. Occupancy in the office portion of the building has fallen to 23%, according to the most recent report from receiver Trigild.
- A 35-acre Bucks County, PA development site once targeted for a large-scale, mixed-use project is set for sheriff’s sale on August 9 after its owner filed for bankruptcy. The property at 2201 Street Rd. in Bensalem is owned by a company controlled by Jignesh “Jay” Pandya, who is also the owner of national restaurant chain Boston Market. Pandya purchased the property, formerly home to Armstrong Middle School, from the Bensalem Township School District through an entity called 2201 Street Rd LLC for $6.3 million in June 2020. The company owes $11.2 million to creditor Zee Bridge Capital LLC, reported the Philadelphia Business Journal.
- Wells Fargo Bank, special servicer for a $725-million mortgage against the 1,024-key Hilton Parc 55 and the 1,919-key Hilton San Francisco Union Square, has hired Eastdil Secured to sell the two properties, reported Kroll Bond Rating Agency. The CMBS loan had defaulted a little over a year ago and has been classified as being in foreclosure since last September. The collateral properties are owned by Park Hotels & Resorts, which last year indicated it wasn’t willing to inject additional capital into them, nor subsidize their debt-service payments. The two properties haven’t been able to muster positive cash flow since 2020, when it was negative $22.96 million, according to servicer data compiled by Trepp.
- In a last-minute move before the site’s foreclosure sale, Plaza Mariachi in South Nashville has filed for bankruptcy. The Nashville Business Journal reported that the filing comes as a foreclosure sale for the Plaza Mariachi site was set to be held July 2 on the steps of the Davidson County Courthouse. The recent bankruptcy filing prevented the scheduled sale, David Anthony, the trustee for the sale, told the Nashville Banner. Anthony will be announcing a 60-day continuance of the sale. Mark Janbakhsh, the creator of the cultural hub, paid $2.74 million for the South Nashville site, a former Kroger supermarket location, in 2014 and opened the cultural hub in 2017.
- The owner of San Francisco’s Chancery Building, a seven-story 1920s property at 41 Sutter St./564 Market St., was served with a notice of default, according to the San Francisco Business Times. CPH 564 LP was listed in the default recorded by lender JPMorgan Chase this week. JPMorgan provided CPH 564, a company affiliated with Chelsea Pacific Holdings LP, with a $30-million loan for the property in 2018. The filing details that CPH 564 fell behind on payments or has not met other obligations related to its mortgage agreement and signals the lender’s ability to begin foreclosure. Subsequent to original publication, CPH 564 received forebearance from JPMorgan Chase and is not now at risk of foreclosure.
- ◦Sale/Acquisition
- ◦Financing
