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Return to Lender: Week of Nov. 8, 2024
- George Washington University has purchased an office building at 2001 Pennsylvania Ave. NW in Washington, DC to provide swing space and future expansion, reported the Washington Business Journal. The 161,000-square-foot building traded for $35 million, or roughly $217 a foot. The seller was Carr Properties, which acquired the building in 2014 for $107.75 million. Carr’s affiliate, 2001 Pennsylvania Avenue LLC, defaulted on its mortgage, with a balance outstanding on the note issued by MetLife of $65.8 million, earlier this year. A foreclosure auction was scheduled but was later canceled.
- 2425 W. Loop S., a prominent Galleria-area office building designed by I.M. Pei, has found a new buyer following a Chapter 11 bankruptcy sale. The undisclosed buyer paid $27 million for the 11-story, 285,000-square-foot Houston office property. Hilco Real Estate Sales conducted the court-ordered sale following the bankruptcy declaration of Galleria 2425 Owner LLC, an entity connected to Houston-based Jetall, according to the Houston Business Journal.
- The San Francisco Business Times reported that Paramount Group Inc. has confirmed that a $400-million loan backed by Market Center is up for sale, putting the 744,584-square-foot downtown San Francisco office complex itself in play. The Business Times first reported in September that Paramount and its lenders, led by Amsterdam-based ING, were exploring a sale of the debt. Eastdil Secured is advising ING.
- Eastport Plaza ($17.2 million | 8.3% of CGCMT 2014-GC25 | CMBX.8) moved to special servicing as a maturity default, Morningstar Credit reported. The loan, backed by a retail property in Portland, OR, remains 95% occupied although 2023’s net cash flow was 20.3% below the underwritten level.
- Morningstar Credit said that River View Shopping Center ($16.4 million | 1.7% of JPMBB 2015-C30 | CMBX.9) moved to special servicing bouncing back and forth across the breakeven line over the past couple of years. Occupancy at the Fresno, CA retail plaza has stalled at around 80% and servicer commentary noted that the borrower filed for bankruptcy.
- 4444 Lakeside ($9.5 million | 1.0% of COMM 2015-PC1) was transferred to the special servicer for imminent default, reported Morningstar Credit. The loan, backed by creative office space in Burbank, CA, has been cash managed ever since the sole tenant (Warner Brothers Entertainment) failed to renew its lease 12 months before its November 2024 lease expiration. Online listings show the entire building is available at $51 per square foot.
- ◦Sale/Acquisition
- ◦Financing
