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Return to Lender: Week of May 9, 2024
- A foreclosure sale has been set for “substantially all” of the assets of Foxtrot Ventures Inc., Foxtrot Retail Inc. and the company’s other holdings, reported the Chicago Business Journal. The sale will take place on Microsfot Teams on May 10 at 10 a.m. Pacific time and will be conducted by DLA Piper, which serves a counsel to Foxtrot’s secured creditor JPMorgan Chase Bank. The assets to be sold include inventory, intellectual property, accounts, documents, furniture and more. This comes after Chicago-based food retailer Foxtrot Market closed all its stores, six months after merging with Dom’s Kitchen & Market.
- Newport Beach, CA-based real estate investment firm Cress Capital and Denver-based and E2M Ventures acquired the loan on The 410, a struggling office property in downtown Denver, for an undisclosed amount, reported the Denver Business Journal. Cress and E2M Ventures acquired the loan on the property and negotiated a deed-in-lieu of foreclosure with the prior owner, RREF III P 410 17 ST LLC, affiliated with Miami-based Rialto Capital Management. The loan had a balance of $96.18 million when foreclosure proceedings began last July. The building, located at 410 17th St. And built in 1977, was 35% occupied at the end of August 2023. In a news release, Cress said it strategically invests in “out-of-favor opportunities at attractive valuations.”
- Hudson Pacific Properties bought out the 45% minority interest in 1455 Market Street in San Francisco from its partner for $43.5 million, or $93 per square foot, a drop of 80% in nine years. The one-million-square-foot property, formerly the headquarters of Uber and Block, was valued at $471 per square foot when the 45% stake was sold for $219 million in 2015. Morningstar noted that although value decreases of this magnitude are obviously not optimal, they may at least provide pricing guidance for the double-digit San Francisco office properties that are currently in special servicing waiting for a resolution.
- The lender that repossessed the Kayak Miami Beach hotel a month ago has sold the property for $12.8 million. The South Florida Business Journal reported that VMC TRS 4 LLC, in care of loan servicer Trimont in Overland Park, KS, sold the 51-room hotel at 2216 Park Ave. to 2216 Park Ave LLC, an affiliate of Miami-based Blue Suede Hospitality Group. The lender seized the hotel in a deed in lieu of foreclosure in exchange for releasing $13.68 million in mortgage debt to the prior owner.
- Morningstar reported that a resolution appears imminent for One City Centre ($100.0 million | JPMBB 2015-C29 & JPMBB 2015-C230), which is under contract to be sold, according to a JLL listing. The loan, backed by a Houston office property, was transferred to special servicing in April 2021 for monetary default triggered by the departure of the largest tenant, Waste Management, upon its lease expiration. The departure has led to a significant performance decline, with the loan’s DSCR and occupancy last reported at -0.38x and 24%, respectively, as of December 2023. The property’s most recent appraisal in August 2023 valued it at $30.4 million, an 81% decrease from its issuance value of $162.0 million.
- Macquarie has put the 156,263-square-foot office building at 111 West Illinois St. in Chicago up for sale, Crain’s Chicago Business reported. The Australian financial services firm has hired Cushman & Wakefield to market the property, which it took control of when it acquired GLL, a German real estate firm, in 2018. GLL purchased the property in 2015 for $75 million. But it’s now expected to fetch bids near $16 million. The property was fully occupied by WeWork and Salesforce when GLL acquired it, but occupancy now is just 23%.
- Foreclosure proceedings have begun for the former Yellow Corp. headquarters in Overland Park, KS. A CMBS loan backing the former Yellow headquarters building at 10990 Roe Ave. entered foreclosure last December, the Kansas City Business Journal reported. Its current balance is about $17 million. The now-bankrupt less-than-truckload shipping company once occupied a 10-story office tower and a four-story building at the corner of Roe and Interstate 435.
- A receiver has been appointed for downtown Columbus, OH’s KeyBank building, according to Columbus Business First. New York-based Zamir Equities bought the Broad Street tower in 2022 for about $12 million from Schottenstein Property Group. Since then, several tenants have claimed there are issues with the building’s upkeep, while KeyBank and the Ohio Auditor’s office recently announced their moves from the 21-story tower at 88 E. Broad St. Atlanta-based Ardent Cos., the lender behind Zamir’s 2022 purchase, has since filed a complaint seeking repayment of its loan and the appointment of a receiver to manage the property and ultimately sell it.
- A Hennepin County District Judge has granted Wings Credit Union’s request for a court-appointed receiver to take over the 8200 Tower within the Normandale Lake Office Park in Bloomington, MN, according to the Minneapolis/St. Paul Business Journal. The May 6 order appointed New Brighton-based Lighthouse Management Group to take control of the property effective immediately. The judge’s order found that the building’s owner, Liberty 8200 Normandale LLC, which signed a 99-year lease to the building, defaulted on the property by failing to make monthly installment payments on a $41.3-million mortgage it took out from Wings in 2022.
- Goldman Sachs and Ballast Investments are in talks to hand roughly 1,200 San Francisco apartments back to their lender after defaulting on debt tied to the properties last year, the San Francisco Business Times reported. The pair are expected to hand several residential portfolios back to RBC Real Estate Capital Corp. in a deed-in-lieu transaction that could occur as soon as next month. Between 2020 and 2021, RBC originated loans totaling $687.5 million for three residential portfolios owned by Goldman Sachs and Ballast. Goldman and Ballast spent about $704.5 million to amass the portfolios between 2017 and 2020.
- ◦Sale/Acquisition
- ◦Financing
