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Return to Lender: Week of Oct. 24, 2024
- The Portland Business Journal reported that the Five Oak building at 421 S.W. Oak St. in downtown Portland, OR was handed back over to investment management company Nuveen, which foreclosed on the property in August with an outstanding loan balance of $44.2 million. The same group late last year acquired Portland’s Sixth + Main building in a deed in lieu of foreclosure. DRA Advisors, based in New York, first acquired the 266,664-square-foot, Class B property in 2020.
- A large section of L’Enfant Plaza in Southwest Washington, DC sold at a massive discount to the sole bidder at a foreclosure auction Wednesday. The undisclosed bidder paid $83.7 million for several mixed-use properties totaling nearly 888,000 square feet. The properties were last appraised at $365.6 million, according to the Washington Business Journal. The auction at the DC office of Alex Cooper Auctioneers was scheduled in September after JBG Smith Properties stopped paying the loan in 2023 and wrote off the properties, valuing them at zero. The loan had an outstanding balance of more than $237.8 million in late September.
- Yellowstone Real Estate Investments, which held a troubled $170-million mortgage against the 697-room Maxwell Hotel in Midtown Manhattan, has taken the collateral property through foreclosure, Trepp reported, citing Crain’s New York Business. The New York investor had purchased the loan from LoanCore Capital, which provided it in 2018 to fund the hotel’s $190-million purchase by Capstone Equities and Highgate Holdings. At the time, the property, at 541 Lexington Ave., was known as the W. It’s been closed for four years; the loan matured two years ago.
- Downtown San Francisco’s former Westfield mall is scheduled for a foreclosure auction in November, the San Francisco Business Times reported. Representatives for lenders this week served borrowers Brookfield and Westfield with a notice of trustee sale informing the pair that the 1.4-million-square-foot retail and office property would be sold at public auction Nov. 14 to the highest bidder. As of Oct. 14, the pair owed more than $625.6 million to lenders Deutsche Bank AG and JPMorgan Chase.
- The Chetrit Organization could lose two Lower Manhattan office properties to foreclosure, according to Crain’s New York Business. In two separate lawsuits, LoanCore Capital Credit sued Chetrit, alleging a default on nearly $200 million in loans backed by 1 Whitehall St. in the Financial District and 428 Broadway in SoHo. The asset management firm seeks the forced sale of the buildings.
- A $160-million loan linked to an office building in Boston’s Back Buy has been placed into special servicing after the landlord ran into cash flow issues following WeWork’s departure from the property. The Boston Business Journal reported that New York-based Capital Properties has the loan for Park Square, an 11-story, 503,000-square-foot building at 31 St. James Ave. The debt was transferred to the special servicer, LNR Partners, last month for imminent default.
- The $100-million CMBS loan on 141 Livingston St. in Brooklyn (BMARK 2021-B24, BMARK 2021-B25 & BMARK 2021-B26 | CMBX.15) has transferred to special servicing, Morningstar Credit reported. The 213,745-square foot office property is leased primarily to the City of New York City Department of Citywide Administrative Services through December 2025. However, the agency has leased space at another building and renewal is unlikely.
- Morningstar Credit reported that Braddock Metro Center ($72.3 million | BMARK 2018-B2 & CGCMT 2018-B2) has moved to special servicing for non-monetary default. The borrower on the Alexandria, VA office property had sought to modify the cash management agreement after a cash trap was sprung when the DSCR dropped below 1.20x.
- Stevens Center Business Park ($47.8 million | 12.3% of JPMBB 2014-C23 | CMBX.8) has transferred to special servicing after missing its September 2024 maturity date. Morningstar Credit reported that the loan, backed by an office park in the Seattle suburb of Kirkland, WA, stayed current throughout the loan term and maintained occupancy rates north of 90%. However, net cash flow had fallen over the years, with 2023’s figure sitting 23% below the underwritten figure.
- ◦Sale/Acquisition
- ◦Financing
