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Return to Lender: Week of May 2, 2024
- Ashford Hospitality Trust, Inc. has turned over control of the hotels securing the $180.7-million KEYS A Loan Pool and the $174.4-million KEYS B Loan Pool to a court-appointed receiver. The REIT said it has cooperated with the servicer for a consensual foreclosure or deed in lieu of foreclosure on these properties since July 2023. The transfer affects 14 properties in nine states that are branded as Courtyard, Residence Inn, SpringHill Suites and TownePlace Suites.
- Consus Asset Management reportedly walked away from buying the one-million-square-foot office tower at 777 S. Figueroa St. in Los Angeles. The South Korean investment firm was to pay $145 million for the 52-story property. Trepp reported that owner Brookfield Properties had defaulted on $318.6 million of debt in 2022 and planned to use proceeds from the sale to Consus to pay it down.
- WeWork Inc. is keeping two more workplaces in Greater Los Angeles after moving forward with its plan to exit Chapter 11 bankruptcy, the Los Angeles Business Journal reported. The lease assumptions put The Hubb in Long Beach and Park Tower in Orange County’s Costa Mesa back on WeWork’s list of re-leased locations in Southern California. The flexible workspace company has been announcing lease assumptions over the past couple months across the U.S. and Canada, all subject to court approval.
- The San Francisco Business Times reported that two San Francisco office buildings tied to $47 million worth of CMBS are at risk of foreclosure after the property owner was served a notice of default this month on a portion of the debt. The borrower, an affiliate of Chicago-based real estate investment firm Gem Realty Capital, is behind $2.2 million in payments and has been served a notice of default for a loan originated in 2019 from Goldman Sachs. The loan’s beneficiary stated in the notice it intends to put the buildings at 222 Kearny St. and 180 Sutter St. for sale via foreclosure auction if the outstanding debt is not paid. The loan has been in special servicing since August 2023
- Morningstar reported that an office property at 20 W. 37th St. In Midtown Manhattan, which backs a $27.5-million CMBS loan, had its appraised value lowered to $20.3 million from its prior value of $35.2 million, which was obtained during a previous stint in special servicing. The New York mixed-use building was previously specially serviced after a COVID-era transfer and was eventually granted a modification. It transferred to special servicing again last December for a non-monetary default.
- The Monroe office tower in downtown Phoenix could soon have a new owner, reported the Phoenix Business Journal. The 19-story building at 111 W. Monroe St. is being listed for $24 million, or about $94 a square foot. Newmark has the listing. The property’s current owner is Granite Point Mortgage Trust, which took over ownership through a deed in-lieu of foreclosure in 2023 from Chicago-based GEM Realty Capital.
- The former Mosque of the El Jebel Shrine in Denver’s North Capitol Hill neighborhood has entered the foreclosure process for the second time under its current owners, according to the Denver Business Journal. Fairbridge Strategic Capital LLC lent the owners of 1770 Sherman St. $8.1 million in January 2023, and that loan matured Feb. 1. The firm claims that the owners of 1770 Sherman St. and the adjacent parking lot, Denver Temple LLC, now owe Fairbridge $9.1 million after interest and other charges.
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