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Return to Lender: Week of Nov. 21, 2024
- Hillendale Country Club is headed to foreclosure auction just a few months after closing its doors, the Baltimore Business Journal reported. The 100-year-old institution known to its members as “the old club” will be sold on the steps of the Circuit Court for Baltimore County on Dec. 11 at 1 p.m. The auction includes the club’s 147 acres, clubhouse, 18-hole golf course, swimming pools and tennis courts. Alex Cooper Auctioneers is handling the sale.
- New York Life Insurance Co. has filed to foreclose against $107.4 million of financing backed by a 263,393-square-foot office property at 1111 19th St. NW in downtown Washington, DC. Citing the Washington Business Journal, Trepp reported that a foreclosure auction, handled by Harvey West Auctioneers, is scheduled for Dec. 17. The property is owned by Unizo Holdings Co., which acquired it in 2017 for $203 million.
- A foreclosure notice has been filed for the 10-story, 565,000-square-foot office at 1800 M St. NW, reported the Washington Business Journal. The building, owned by a joint venture of New York’s Columbia Property Trust and Allianz Real Estate of America, is scheduled to be sold at a Dec. 20 foreclosure auction at Alex Cooper Auctioneers’ DC office. The JV owes $302.2 million on a $286.9-million note issued in 2021 by Citi Real Estate Funding, Deutsche Bank AG New York Branch and Goldman Sachs.
- A mortgage foreclosure auction Tuesday for the Troy Atrium, historic Frear Building and a large vacant lot in downtown Troy, NY drew three prospective bidders but none were willing to offer at least the minimum amount bid by the lender. As a result, BLC Cos., a private, non-bank lender in Irvine, CA, now has clear title and will continue to market the properties for sale through its local broker, NAI Platform, according to the Albany Business Review. The list prices are $2.4 million for the Atrium, a run-down former shopping mall; $5.6 million for the Frear Building next to the Atrium; and $2.25 million for the 1.6-acre vacant lot between River and Fourth streets.
- The CMBS trust holding a $39.5-million loan against an 18,063-square-foot retail condominium at the base of 866 Third Ave. in Midtown Manhattan has initiated a foreclosure effort against the 30-story mixed-use building. Trepp reported the loan matured in August and has been with special servicer Midland Loan Services since last May. The owner of the space, the Witkoff Group, sought to modify the loan, extending its term and apparently reaching an agreement with Midland. But the deal stalled, prompting the special servicer to initiate foreclosure efforts.
- JLL has been appointed as receiver for 400 South Tryon St., a 587,000-square-foot office building in the Uptown submarket of Charlotte, Trepp reported, citing the Charlotte Business Journal. A venture led by Oaktree Capital Group bought the 32-story property in 2018 for $133.5 million, financing the acquisition with a $93.5-million loan from Citizens Bank. The mortgage was later restructured, with Synovus Bank brought in to take on more than $30 million of the balance. The lending venture earlier this month filed suit against the Oaktree-led venture, claiming it defaulted on the loan starting in June 2023. More than $90.7 million of debt, including principal and interest, remains outstanding.
- The $350-million securitized loan on 225 Bush in San Francisco is now in special servicing, having failed to pay off at its November 2024 maturity. Twitch, Knotel and Sunrun are among the tenants to leave the building over the years, dropping its occupancy to just 44% as of June 2024, according to Morningstar Credit. However, the loan has remained above breakeven and paid on time for the life of the loan up until maturity.
- A $219.2-million loan backed by 285 Madison Ave. in Midtown Manhattan is back in special servicing, according to Morningstar Credit. The loan first moved to the special servicer in September 2022 for a maturity extension and was granted an extension that expired in May 2024. In July, it scored a short forbearance period that expired this month. The most-recent forbearance has now come and gone, and the loan again failed to pay off, necessitating another stint in special servicing.
- Morningstar Credit reported that the 555 11th St. NW loan ($177 million | MSBAM 2015-C21 & MSBAM 2015-C22) missed its November 2024 maturity and moved to special servicing. The loan, backed by a 414,000-square-foot office building in Washington, DC, had performed adequately over its loan term, but occupancy began to tail off as it approached maturity, falling to 77% as of June 2024.
- 1 Kaiser Plaza in Oakland, CA ($97.1 million | JPMCC 2016-JP3 & JPMDB 2016-C4 | CMBX.10) transferred to special servicing this month for imminent default, according to Morningstar Credit. Per the servicer commentary, the borrower stated that the largest tenant (Kaiser Foundation Health Plan) will significantly reduce its space, thus impairing cash flow. Kaiser is in 68% of the space on a lease until February 2027, although the prospectus notes that Kaiser can contract up to 140,000 square feet of its space at any time with the payment of a contraction fee.
- The appraised value of two troubled Union Square office properties has dropped more than 75% since the buildings last traded hands in 2019, according to the San Francisco Business Times. Appraisers this summer valued the 121,000-square-foot 222 Kearny St. and 24,000-square-foot 180 Sutter St. at $18.3 million, or roughly $126 per square foot. Chicago-based Gem Realty Capital and San Francisco-based Flynn Properties acquired both buildings in a July 2019 deal that valued the pair at $74.75 million, or around $516 per square foot. Lenders reported in July they would move to foreclose as soon as August of this year. But foreclosure proceedings have been repeatedly pushed back, and lenders are now targeting foreclosure in early 2025.
- White Marsh Mall ($186.8 million | WFRBS 2013-C14 & WFCM 2013-LC12) reported a modification this month extending maturity to May 2027. Morningstar Credit reported that the loan, backed by a regional mall in Baltimore, has been in special servicing since August 2020 when it fell delinquent amid the pandemic. An appraisal from earlier this year had dropped the value to just $80.0 million.
