- FRI Investors is said to be paying a little less than $100 million, or $71.43 per square foot, for the 68% leased, 1.4-million-square-foot office building at 70 West Madison St. in Chicago, Trepp reported, citing Crain’s Chicago Business. The West Palm Beach, FL, company is buying the property from a venture of Hearn, GEM Realty Capital and Farallon Capital, which acquired it in 2014 for $375 million. Ownership was hit with a foreclosure suit in May, alleging that the group defaulted on $305 million of debt that was provided against the property in 2018 by Bank of America, PNC Bank, Aareal Bank and Raymond James.
- Trepp reported that the 198-room Doubletree Jersey City hotel in Jersey City was acquired by Capital Insight for $61.5 million, or $310,606 per key, in a deal that involved its assumption of a long-troubled $60-million loan. The hotel had been overseen by a receiver, Trigild, since 2022. The property’s then owner, an affiliate of Hartz Mountain Industries, had said it would turn the hotel over in a deed-in-lieu of foreclosure. As part of Capital Insight’s acquisition, the mortgage has had its term extended by two years to October 2027.
- A New York judge has ordered the mortgage lender for the Aloft hotel near the Galleria in Houston to pay nearly $51 million to repurchase the hotel’s long-delinquent loan as the property’s receiver works to stabilize its finances. The Houston Business Journal reported that Aloft Houston by the Galleria’s loan servicer now seeks additional financial information from its owners to determine a course of action, given that the hotel’s ownership still had a $30.8 million loan balance as of February. The hotel at 5415 Westheimer Rd. has been in receivership for the past four years, and loan servicer notes say the hotel’s owners, The Levine Organization out of Melville, NY, have failed to keep up with debt service payments since October 2021.
- An affiliate of Ardent Cos. has filed a foreclosure suit against the venture that owns two office buildings totaling 326,822 square feet in downtown Miami, reported Trepp. The venture, between Stonerock Capital Partners and Triple Double Real Estate, bought the buildings at 200 SE First St. and 44 West Flagler St. in May 2022 for $56.7 million, financing them with a $58.3-million loan from Ardent that matured in June. But the loan, now with a balance of $49.4 million, defaulted at the start of the year, according to the suit. The lender has requested that a receiver be appointed to manage both buildings.
- A receiver has taken over management of the office tower at 312 Elm St. in downtown Cincinnati, marking the third office building in the CBD to pass into receivership, reported the Cincinnati Business Courier. Paul Plattner, managing director of Colliers Real Estate Management Services, assumed the court-appointed role last month. Delaware-based Wilmington Trust, an affiliate of M&T Bank Corp., currently holds the mortgage note, executed in 2015 with a principal amount of $46.1 million upon Philadelphia-based Rubenstein Partners’ purchase of the building.
- The $409.8-million Ashford Hospitality Trust Portfolio loan has gone back into special servicing due to imminent monetary default. The loan is backed by a portfolio of 17 hotels across seven states operating under seven different flags including Hilton, Marriott and Starwood franchises. Morningstar Credit reported that the loan was previously transferred to the special servicer in April 2020 because of COVID-19 pandemic hardships. However, a loan modification agreement was executed in February 2021 and the loan was returned to the master servicer in April 2021. After the final 12-month extension option, the loan matures in November 2024.
- The $247.2-million Stamford Plaza Portfolio loan (GSMS 2014-GC24, CGCMT 2014-GC25 & WFRBS 2014-C22 | CMBX.8) moved to special servicing after failing to pay off at its August 2024 maturity, according to Morningstar Credit. The loan, secured by four office buildings totaling 986,000 square feet in Stamford, CT, has been buffeted by decreasing occupancy and cash flows for years. Net cash flow in 2023 was 58% below the underwritten level and occupancy hasn’t managed to break the 70% mark.
- The Centre, a $130-million CMBS loan backed by a 314-unit, 15-story apartment building in Cliffside Park, NJ, transferred to special servicing in September 2024 for maturity default. Morningstar Credit reported that the pari passu loan actually matured back in July 2024 but it was under forbearance from July 2024 to September 2024. The property has performed well during the life of the loan, maintaining 90%+ occupancy and a DSCR in excess of 2.40x.
- A $118.9-million loan backed by the majority of Colorado Mills, a 1.4-million-square-foot outlet center in Lakewood, CO, was sent to the special servicer on August 29 for maturity default ahead of its November 2024 maturity, Morningstar Credit reported. The loan’s collateral consists of 918,448 square feet. The Simon Property Group-owned center has more than 130 tenants and is anchored by Regal Cinemas and Burlington.
- Coastal Grand Mall ($99.3 million | 29.8% of GSMS 2014-GC24) has also moved to special servicing after missing its August 2024 maturity. The loan is backed by a mall in Myrtle Beach, SC that had performed fairly well in recent years, seeing its occupancy rebound from 83% in 2022 to 99% as of June 2024. The CBL-owned mall had previously remained current through the loan term save for a temporary payment deferral period during the pandemic, Morningstar Credit reported.
- A $94-million loan on Gateway Center in Pittsburgh (60.7% of JPMCC 2013-C10) was transferred to the special servicer for imminent maturity default ahead of its January 2025 maturity. The four multi-tenant office buildings reported occupancy of 55% as of March 2024., according to Morningstar Credit. The loan initially received a maturity extension in 2023, and the performance has not stabilized.
- Westbrook Corporate Center ($88.8 million | MSC 2018-H3, BMARK 2018-B4 & BMARK 2018-B5 | CMBX.12) was transferred to special servicing on September 10, 2024, due to imminent non-monetary default. The loan is backed by a 1.1-million-square-foot office campus consisting of five Class A multi-story office buildings in the Chicago suburb of West Chester, IL. Occupancy was 68% as of June 2024, down from 84% at issuance.
- Meridian Corporate Center ($74.1 million | BMARK 2018-B4, JPMDB 2018-C8 | CMBX 12) was transferred to special servicing earlier this month for imminent monetary default, reported Morningstar Credit. The loan is secured by a portfolio of ten Class A suburban office properties in Durham, NC, adjacent to the Research Triangle Park. The portfolio’s 2023 net cash flow was 17% below issuance and the occupancy was 67% as of June 2024,
- Morningstar Credit reported that a $74-million loan backed by 214-224 W. 29th St. In Manhattan’s Chelsea submarket transferred to special servicing due to payment default. The 200,454-square-foot office reported a 2023 net cash flow that was 56% below the issuance level and a DSCR just below breakeven. Occupancy has also deteriorated, dropping from 83% at issuance to 67% as of December 2023. Loan maturity is not until July 2029.
- The special servicer has approved a one-year maturity extension and modification for Aspiria Office Campus ($232.5 million | JPMCC 2021-BOLT), pushing the maturity to August 2025, Morningstar Credit reported. The loan is backed by a 3.7-million-square-foot, 20-building Class A Office Campus in Overland Park, KS, within the Kansas City metro area. The loan’s first maturity was in September 2023, but the borrower was granted a one-year extension. The loan was then returned to the master servicer only to ultimately be shipped back to the special servicer in June 2024.
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