Return to Lender: Week of March 7, 2024

• The 1,331-key Row Hotel at 700 Eighth Ave. in Manhattan is being listed for sale, with the owners seeking $350 million for the property, reported Trepp. Eastdil Secured has been hired to find a buyer. The property is split into a fee and leasehold interest. The fee interest is owned by a venture of investor David Werner and the Los Angeles County Employees’ Retirement Association, which bought it in 2013 for $350 million. The leasehold interest is owned by a venture of Highgate Holdings and Rockpoint Group, which purchased the property, then known as the Milford Hotel, in 2010 for $200 million and invested another $140 million in its redevelopment. It then divided the property into the fee and leasehold interests, which would be sold together. The 28-floor Row Hotel, located between 44th and 45th streets, is being used as a migrant shelter. The city in 2022 signed a $40-million contract to rent the property out in its entirety. The loan on the ground lease went into special servicing after the hotel was shut down by the pandemic in March 2020, according to Morningstar Credit. 

• With March remittance dates still ahead, Morningstar Credit highlighted some larger loans that fell delinquent in February but haven’t moved to special servicing yet. They include the following: 

Waterfront at Port Chester ($133.5 million | MSBAM 2015-C22 & MSC 2015-MS1): The Port Chester, NY retail property was specially serviced back in 2021. It ran delinquent for several months in 2023 and is once again 30-plus days delinquent. The DSCR as of December 2023 was just 0.78x after being above breakeven for the two years following the special servicing stint. 

The Onyx ($38.0 million | 2.1% of BMARK 2022-B32): The Houston office property has fallen into its grace period multiple times over the past year but pushed into the 30-plus category this month. There’s no commentary on it and the June 2023 DSCR was a healthy 1.79x although occupancy had fallen from 94% in 2022 to 86%, reported Morningstar. 

City Club Apartments Lafayette Park ($28.1 million | FREMF 2022-KF139): The Detroit multifamily property reported a DSCR of just 0.37x as of June 2023 with occupancy having fallen from 97% at issuance to 76%. 

184 Liberty Corner Road ($68.8 million | CSAIL 2017-CX9 & UBSCM 2017-C3 | CMBX.11): The office property in Warren, NJ was reported as late in January, then 30+ days delinquent in February. The property reported a drop in occupancy to 81% as of September 2023, with DSCR following that downward trend to 1.20x.  

Spring Hollow Apartments ($26.2 million | BMARK 2019-B10): The Toledo, OH apartment building is now delinquent after several months of late payments. The September 2023 DSCR fell below breakeven despite occupancy being reported at 98%.

• GS-A Deerfield Crossing Owner LLC, an affiliate of New York City-based Apollo Global Real Estate Management, defaulted on a $31.9 million promissory note related to its purchase of Deerfield Crossing in Ohio’s Warren County, the Cincinnati Business Courier reported. Wilmington Trust, on behalf of lenders, alleged in an amended foreclosure complaint filed Dec. 1, 2023 that Apollo owed over $30.9 million, plus interest, for the default, and sought a receiver and approval to sell the property once it was in foreclosure. Trigild was chosen as the receiver.