- The Dilweg Cos. turned ThExchange office park in Charlotte over to Ares Management, the Charlotte Business Journal reported. The property’s $68.6-million loan matured in May and became nonperforming that same month. Ares initiated foreclosure proceedings on the property at 5510 77 Center Drive in July. Overall occupancy at the property is currently 64%, according to CoStar data.
- Vibrant Wellness, a Silicon Valley biotech company, bought an office property at 3100 N. First St. in San Jose from an affiliate of its lender, East West Bank, for $17.5 million, the Silicon Valley Business Journal reported. The property went into foreclosure under its last real estate firm owner, Vista Investment Group, which defaulted last October on nearly $24 million of a $25-million refinancing loan.
- An affiliate of Starwood Property Trust paid $22.8 million to take back the 12-floor, 71,000-square-foot office building at 29 W. 35th St. in Manhattan, according to the New York Business Journal. Starwood aquired the property after hosting a foreclosure auction to find other buyers this summer. Empire State Equities, also known as American Equities, is the seller in the transaction. Over 17 years of owning the 113-year-old Midtown South office building, the company faced multiple foreclosures on the property.
- Morningstar Credit reported that Columbia Corporate Center ($20.5 million | MSC 2019-H6) was liquidated in September, resulting in an $8.3-million loss to the trust. The loan, backed by an office in Florham Park, NJ, had been with the special servicer since August 2023. Servicer commentary indicated that the borrower submitted a discounted payoff proposal which was ultimately approved.
- An 11-story, 306,600-square-foot office property at 1110 Vermont Ave. NW in Washington, DC is scheduled for an Oct. 30 foreclosure auction at Alex Cooper Auctioneers, according to the Washington Business Journal. The owner, an affiliate of Epic LLC, owes nearly $77.5 million on a $90-million note originally issued in 2019 by M&T Bank.
- The historic U.S. Custom House in the Pearl District of Portland, OR will be up for foreclosure auction early next year, reported the Portland Business Journal. Lazarus House LLC, an affiliate of California-based Vista Investment Group, owes around $20.5 million on the building at 220 N.W. Eighth Ave. The amount includes $19.5 million in unpaid principal, interest and other fees. An auction is scheduled for Jan. 21, 2025. Meanwhile, lenders hope to offset the $19-million loan via online auction running from Oct. 28 to Oct. 30.
- The Minneapolis/St. Paul Business Journal reported that a New Brighton, MN-based company with experience in commercial property receiverships has taken control of the Dayton’s Project in downtown Minneapolis as the property’s owner faces a foreclosure suit claiming mortgage default. A judge with Hennepin County District Court issued an order last month appointing Lighthouse Management Group Inc. as receiver of the building, located at 700 Nicollet Mall, to maintain the property while it goes through the legal process. An entity tied to the property’s lender, New York-based Fortress Investment Group, sued to foreclose on the property, claiming the borrower defaulted on its $200-million loan.
- Commons at Madera Fair ($18.1 million | 4.9% of COMM 2014-UBS5) moved to special servicing this month after failing to pay off at its September maturity, reported Morningstar Credit. The retail property, a nearly 300,000-square-foot retail center in Madera, CA, is anchored by Lowes in 57% of the space on a lease until July 2028. The loan’s DSCR has always hovered around 1.20x and was below break-even for the first half of 2024 despite being 99.5% occupied.
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