National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Return to Lender: Week of Nov. 2, 2023
- Although it’s not a yet a done deal, WeWork could file a chapter 11 petition as early as next week, the Wall Street Journal reported. WeWork missed interest payments owed to its bondholders on Oct. 2, kicking off a 30-day grace period, but reached a forbearance agreement on Oct. 31, allowing another seven days to negotiate with financial stakeholders before a default is triggered.
- Boston-based investment firm CrossHarbor Capital Partners, which originated a $71.4-million loan on 55 New Montgomery for owner Swift Real Estate Partners in 2018, purchased the 100,000-square-foot San Francisco office property at public auction for $15 million, the San Francisco Business Times reported. The sale comes after Swift, which bought the property for $65.4 million in 2018, was served a notice of default for the office building in June. CrossHarbor’s $15-million winning bid for the property places its valuation at roughly $150 per square foot, down from more than $640 per square foot in 2018.
- Washington Business Journal reported that the owner of Dulles View in Herndon, VA has proposed a deal to turn over the keys to the two-building office complex after defaulting earlier this year on a CMBS loan tied to the property. An affiliate of New Mexico-based Rosemont Realty and Hong Kong-based Gemini Investments Ltd. owes $50.8 million on the loan, which went into special servicing and matured in April. The twin towers total about 374,000 square feet.
- The Macerich Co., a joint venture partner in Country Club Plaza, a shopping center in Kansas City, MO, said a quarterly net loss was driven in large part by an expected shortened ownership period for the property. Macerich realized a $107.7-million third-quarter loss from its share of impairment charges resulting from anticipated “shortened holding” of the Plaza, reported the Kansas City Business Journal. The 50/50 JV between Macerich and Taubman Centers defaulted in May on $295.2 million in outstanding acquisition financing and since has said it is “working toward a mutually acceptable outcome” with lender Nuveen. Numerous sources in recent weeks have said HP Village Partners LP, the owners of Highland Park Village in Texas, have the Plaza under contract.
- A second retail property with an expected shorter hold, Fashion Outlets of Niagara, accounted for $144.7 million of Macerich’s overall $262.5-million Q3 loss, reported the Business Journal. An $86.14-million loan on the Niagara Falls, NY property went into special servicing last month.
- The already struggling Wanamaker Building in Philadelphia ($124 million total debt | 43.4% of NCMS 2018-FL1) has lost another tenant, Morningstar reported. LevLane has relocated from the building to One Logan Square. Although LevLane’s footprint at Wanamaker was relatively small, it continues a trend that has pushed the building’s occupancy below 50%.
- The Luzzatto Company defaulted on a $48-million loan backed by 1301 Exposition Blvd. in Los Angeles, according to published reports. The loan on Sweetgreen’s former headquarters, issued by TerraCotta Group last year, reached maturity in August. Foreclosure could occur as soon as Jan. 10, 2024.
- ◦Financing
