Westway One, a prominent office property located in Irving, Texas and serving as the headquarters for Pei Wei Asian Diner LLC and CEC Entertainment LLC (parent company of Chuck E. Cheese), has recently been acquired by a buyer following its bankruptcy filing. The property was purchased for $12.5 million by Irving Westway One LLC, an entity connected to Good Signature Management LLC based in Dallas. The seller, Hartman SPE LLC from Houston, filed for Chapter 11 bankruptcy protection last September as its parent company shifted focus towards investing in self-storage facilities.
A hotel situated near Disneyland in Anaheim is facing foreclosure after defaulting on a $127-million loan tied to the Viv Hotel project built by Portland developer Walter Bowen. According to reports from the Portland Business Journal , BDC/Anaheim LLC owned by Bowen defaulted on their loan with lender 3650 REIT Anaheim owing approximately $145 million including fees and legal costs.
Industry Denver, a popular coworking space located at 3001 Brighton Blvd., has defaulted on two loans resulting in American General Life Insurance Company and American Home Insurance Company filing lawsuits against current owner Clarion Partners based out of New York City. Both loans matured this past November with outstanding balances totaling over $28 million according to recent court documents.
Morningstar reported that Fashion Outlets of Niagara Falls underwent an appraisal this past November valuing it at just over half its previous value at only $98.2 million compared to August’s valuation of nearly double that amount ($190 million). Despite this significant decline due largely imparted due COVID-19 pandemic impacts on retail properties like malls such as Fashion Outlets – which is currently valued at roughly five percent (5%) COMM2010-C1 – it still remains above what is owed under CMBS terms until maturity date arrives sometime during October next year when special servicing will take place because they are not paying off any debt obligations anymore since transferring into special servicing October 2023.
Another property in New York City, located at 25 W. 45th St., has also been transferred to special servicing ahead of its January 2024 maturity date due to declining occupancy and a DSCR below breakeven as reported by Morningstar. The property was previously leased by WeWork but the tenant failed to make payments on time and ultimately vacated in early-2021.
In San Francisco, Bridgeton – an investment firm based out of NYC – has received a notice of default for their office building located at 995 Market St., which could potentially result in lenders taking control over the property situated within Mid-Market district. This comes after Bridgeton informed LStar Capital (their lender) that they would not be able to make any further loan payments for this particular building according reports from San Francisco Business Times . As it stands now, Bridgeton is behind on roughly $2.85 million worth of debt obligations as December draws near.
Also facing similar issues is another San Francisco-based mixed-use development known as “140 Second Street” with an outstanding balance totaling nearly $20 million owed under CMBS terms until maturity date sometime during next year when special servicing will take place because they are not paying off any debt obligations anymore since transferring into special servicing per December’s remittance data provided by Morningstar; occupancy dropped significantly between Q4’22 & Q3’23 going from ninety-nine percent (99%) down thirty-two percent (32%).
