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Return to Lender: Week of Sept. 5, 2024
- Lowry Apartments in downtown St. Paul was sold for $7 million at a foreclosure auction to the owner of the unpaid mortgage, according to Minneapolis/St. Paul Business Journal. The new owner of the 11-story, 134-unit apartment building, located at 345 N. Wabasha St., is Lowry Apartments LLC, a subsidiary of Colliers. Lowry Apartments LLC sought the foreclosure after the previous property owner defaulted on a $16.9 million mortgage, according to a foreclosure notice and public court filings. The property was previously owned by St. Paul-based Madison Equities.
- One of Kansas City’s oldest skyscrapers is positioned for a transfer from its out-of-town owners to a lending institution, which would become responsible for resolving extensive blight and security problems it outlined during months-long Chapter 11 bankruptcy proceedings, according to the Kansas City Business Journal. Axis KC LLC bought Kansas City’s 12-story Scarritt Building and conjoined four-story Scarritt Arcade in 2019. It proposed, but never began, making it into a hotel and coworking offices, then apartments and retail space. Last month, Axis, an affiliate of St. Augustine-based developer Augustine Development Group, entered a settlement agreement with DLP Lending Fund. Under that, it would convey the historic Scarritt complex to the lender through a deed-in-lieu of foreclosure.
- In another situation involving Augustine Development and DLP, the Jacksonville Business Journal reported that Augustine faces a foreclosure lawsuit on the long-abandoned Ambassador Hotel, St. Augustine-based DLP Capital, through Good As New Ventures LLC, sued Axis Hotels LLC, which is associated with Augustine Development Group, stating Axis Hotels has not paid the judgment amount of $10.58 million plus per diem interest of $6,000. Augustine Development has attempted to revive the hotel for the past six years.
- A luxury residential tower in Downtown Atlanta was slated for foreclosure Sept. 3, the Atlanta Business Chronicle reported. Canada-based property investment firm Frankforter Group, owner of the 17-story Generation Atlanta, defaulted on its loan valued at the property’s principal amount of $104.4 million. Generations Property Owner LLC filed last month to foreclose on the property, which Frankforter acquired in late 2021 for a record $126.9 million.
- Morningstar Credit reported that City Club Apartments Lafayette Park ($28.1 million | 4.1% of FREMF 2022-KF139) was moved to the special servicer as of the August reporting. The Detroit property’s performance has trended downward, with occupancy plunging from 97% at issuance to 68% as of March 2024. The 2023 net cash flow was well below breakeven.
- The $18.2-million loan on Sutter Ranch (4.5% of FREMF 2021-KF114) a 228-unit multifamily property in Houston, has moved to special servicing after falling delinquent, reported Morningstar Credit. The revenue for 2023 exceeded the underwritten level, but elevated expenses caused the 2023 net cash flow to dip to $1.06 million, down from $1.32 million at issuance. Occupancy as of March 2024 was 90%, down from the 97% level at underwriting.
- ◦Sale/Acquisition
- ◦Financing
