A recent report from the New York Business Journal revealed that a foreclosed apartment complex in Brighton Beach, Brooklyn has been sold to Manhattan-based Madison Realty Capital (MRC) for $24 million. The 41-unit property, located at 3052 Brighton 1st St., was previously owned by Brooklyn-based real estate developer Chaim Miller through his company, 3052 Brighton First LLC. MRC acquired the property as part of bankruptcy procedures.
In Southwest Washington D.C., one of the office buildings within the Portals complex is facing foreclosure according to a report from the Washington Business Journal . Acore Capital Mortgage LP filed a notice on Feb.15 for an upcoming foreclosure sale on Portals III – a building with over half-a-million square feet and currently carrying $155.7 million in debt after receiving a loan worth $177 million back in September of last year. The owners are an affiliate of DC-based Republic Properties Corp and Seoul-based Samsung SRA Asset Management Co Ltd.
CBRE is now marketing Portland’s historic J.K Gill Building for sale following its November foreclosure auction, reports Portland Business Journal . Seattle based Urban Renaissance Group had defaulted on their loan from First Interstate Bank leading up to last year’s auction which resulted in CBRE taking over as listing agent due to it being completely vacant.
According to Morningstar , GGP3PCK Portfolio ($251.3 Million | GSMS2018-3PCK) has once again moved into special servicing status after having already undergone modifications resulting in paying down their debt by $20 Million while also extending maturity dates until March2024 with additional extension options available thereafter if certain conditions were met such as implementing new rate caps or meeting specific debt yield hurdles – neither which have been achieved thus far based off net cash flow projections through end-of-year2023.
Shorenstein Properties is currently negotiating new terms with special servicers regarding their mortgage worth$188million on 1700 Market St. in Philadelphia, reports the Philadelphia Business Journal . The loan was due last week and is held by investors within a CMBS trust. Shorenstein requested that the loan be transferred to special servicing back in December of last year with settlement discussions still ongoing as of January’s most recent report.
Morningstar also reported that Miami International Mall ($159 Million | JPMBB2014-C18 & JPMBB2014-C21 | CMBX8) has been transferred to special servicing status during February’s remittance period – which coincidentally marks when their original mortgage was set to mature. This transfer appears tied directly towards occupancy rates dropping below 80% while net cash flow projections are expected to exceed previous years despite lagging behind issuance levels – all while facing significant lease rollover over the next twelve months.
Peachtree Center ($115.3 million | JPMCC2018-PTC) underwent reappraisal this month resulting in a decrease from $192million down-to $155million according Morningstar . This Atlanta-based office property has remained REO since September2022 after experiencing several years worth of below-market occupancy rates following Truist Bank vacating their space which accounted for roughly one-fifth (1/5th)of underwritten rent and thirteen percent (13%)of gross leasable area; leaving majority vacant space remaining unoccupied.
The Pittsburgh Business Journal recently reported that K&L Gates Center, downtown Pittsburgh’s twelfth largest office building at just over six-hundred-thousand square feet(629K sqft), is currently facing foreclosure action alongside Grant Building who already had an existing foreclosure notice filed against them by Delaware bank Pacific Life earlier this year regarding debt balance owed totaling$59M based off initial mortgage amounting up-to$78M issued back-in 2021; both buildings being owned by separate entities but now sharing similar circumstances involving potential sales.
2 Executive ($54.5 million | 6.4% of BBCMS2023-C19) was transferred to special servicing in January due to term default, according Morningstar . The property located in Fort Lee, NJ is a mixed-use office/multifamily building securitized back-in 2023 but has since experienced several issues such as not properly submitting insurance documents following a fire and failing to address required repairs while also having discrepancies within their financial reporting; all resulting in an NOI down forty-three percent (43%) from initial underwriting projections reported during September’s OSAR filing.
Lenox Park – another office property located this time within Memphis($22.2million | 2.7% of WFCM2019-C52) – was also transferred into special servicing status last month for monetary term defaults with the borrower requesting discounted payoff options that are currently being evaluated by the servicer according Morningstar . This particular building contains over three-hundred-ninety-thousand square feet(391K sqft), reports only thirty-four percent (34%) occupancy rates and had negative debt service coverage ratio (-0.15x DRCR) based off net cash flow projections provided during September’s end-of-year report filed earlier this year.
