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Return to Lender: Week of Nov. 14, 2024
- An affiliate of Fortress Investment Group won a court auction for ownership of assets in New York and Florida owned by LLCs under the control of Charles S. Cohen. At $148.7 million, it is believed to be the largest Uniform Commercial Code auction on record, according to published reports. Properties include the Design Center of the Americas and the neighboring Le Méridien Dania Beach hotel in Dania Beach, FL and the former Doral Arrowwood golf club in Rye Brook, NY. Fortress filed suit against Cohen this past spring, alleging that he was in default on $533.6 million in loans.
- The Jefferson Inn at 150 W. New Hampshire Ave. in Southern Pones, NC was auctioned off Nov. 12 with HomeTrust Bank of Asheville as the high bidder at $3.3. million, reported the Triangle Business Journal. According to property records, the inn was owned by Southern Pines NC One, an LLC tied to Anthony Dilweg, CEO and founder of Dilweg in Durham.
- A campus with three of the largest office buildings in Memphis went up for auction, reported the Memphis Business Journal. The auction for the Thousand Oaks Business Center was scheduled to run through Nov. 13, with CBRE’s John Lamberson and Terry Radford working with Casey Harrell of Ten-X. The 422,000-square-foot campus sits on 32 acres and was being conveyed at 30.79% occupancy and sold at 25.35% occupancy, according to marketing materials.
- The Albany Business Review reported that a mortgage foreclosure auction has been rescheduled for a vacant building in downtown Albany, NY after the owner’s Chapter 11 bankruptcy petition was dismissed. An auction for the property at 17-21 North Pearl St. will be held Dec. 19 at 9 a.m. in the rotunda of the Albany County Courthouse at 16 Eagle St. The ground floor of the three-story, 40,000-square-foot building was formerly leased to Walgreens. The auction was originally scheduled for August 1 but was postponed after the owner filed a Chapter 11 bankruptcy petition two days prior.
- The $260-million securitized loan on 5 Penn Plaza was moved to special servicing as of the November remittance. Morningstar Credit had tracked the 26-story, 650,329-square-foot office in Midtown Manhattan because of weakening cash flow and declining occupancy, which was reported at 76% as of March 2024 as compared to 97% at issuance. The loan is scheduled to mature in January 2026. There’s also $40 million of mezzanine debt on the property.
- A loan on Park Place East and Park Place West in St. Louis Park, MN ($51.0 million | 5.4% of CGCMT 2018-B2) has also moved to special servicing. The servicer tagged the reason for the transfer as ‘Other’, but the buildings have long been less than 70% occupied and the loan’s DSCR has been below breakeven for several years, according to Morningstar Credit. The decrease in occupancy is largely attributable to the downsizing of the original largest tenant, Metropolitan Council, and the departure of the former second-largest tenant from issuance, Strayer University.
- ◦Sale/Acquisition
- ◦Financing
