A prime Manhattan office tower, owned by Blackstone Inc., is facing financial troubles as the $308-million mortgage on 1740 Broadway is up for sale. According to Bloomberg News, the private equity giant defaulted on the debt more than a year ago and now special servicer Midland Loan Services has hired JLL to sell it for approximately $150 million. The property’s current occupancy rate of 7.4% has caused its value to decline since its origination in 2014 when it was appraised at $605 million.
In Philadelphia, Nightingale Properties and Wafra Capital Partners have negotiated with the city to reduce property tax assessments on their Centre Square office complex by a total of $113 million this year. As reported by Philadelphia Business Journal , this comes after sagging occupancy levels led both buildings into receivership. The assessed value will be revised for both 2023 and 2024 tax years with a reduction of 33% in assessment for each year.
The Hilton San Francisco Financial District hotel may soon face new ownership as its borrower defaulted on a guaranteed loan worth $97 million this month according to San Francisco Business Times . A subsidiary of Portsmouth Square Inc., which holds two loans including one from Bank of America originated in October last year, failed negotiations with lenders leading them into special servicing.
Meanwhile in Cincinnati, unless owner Greg Power pays back his creditors or works out an agreement before documents are filed initiating sheriff’s sale proceedings,the Hilton Cincinnati Netherland Plaza could be sold at auction following court ruling favoring lenders who claim he owes them over$84million plus daily interest from April1st2023.The downtown hotel continues operations under court-appointed receiver while Power faces defaultingonthe$72millionloanhe took out earlier.
Morningstar reports that due sudden dropinoccupancyto73%,30KnightsbridgeRoadbackedbya51-3-millionloanrepresentingslightlyover5%ofCOMM2014-UBS4|CMBX.8hasmovedtospecialservicingforimminentdefault.The loan was previously performing but the sudden drop in occupancy has led to its transfer. The 686,000-square-foot office building located in Piscataway, NJ is backed by a loan that matures in July 2024.
In San Antonio, Austin-based GVA faces mounting difficulties with several of its properties including Bella Madera as reported by Austin Business Journal . The company which owns over 30,000 apartments across the country failed to make mortgage payments for November and December last year leading servicer Midland Loan Services to file delinquency on their $36.5-million-loan originated by CBRE Capital Markets.
David Bryce recently gave up ownership of three properties located in Troy NY -the historic Frear Building,the vacant lot where Uncle Sam Parking Garage stood,and Troy Atrium downtown-to BLC Cos.,a private non-bank lender based out of Irvine CA accordingtoAlbanyBusinessJournal.Thiswasdone through a deed-in-lieu-of-foreclosureasBrycevoluntarilyhandedovercontrolofthepropertiesonJan1sttobe relievedofthedebtthatwasowed.
A property near two mega mallsinSanJoseCAisfacingpossibleauctionwithinweeksasthe$3millionloanittookoutin2019hasfallenintodefaultanddelinquency.SantaCruzCountyBankwarnsitmightattempttoauctionofftheseiteorseizethepropertythroughaforeclosureproceeding.AFremontbasedinvestmentgrouppurchasedthepropertyfromagroupledbysanjosebasedrealestateinvestorFredMayerlastOctoberfor$48million.ThelocationacrossthestreetfromSantanaRowamixedusedretailrestaurantofficehousinghotelentertainmentcentermakesitanattractiveinvestmentopportunity.
