A federal bankruptcy court judge has recently made a ruling that will allow the Holiday Inn Express in Washington, DC’s Mount Vernon Triangle to be sold at auction. This decision comes after an involuntary bankruptcy petition was filed, causing a halt to the previous auction by Alex Cooper Auctioneers. The developer of the hotel, Birchington LLC, had fallen behind on payments to multiple creditors and now owes over $83 million with no clear plan for restructuring their debts.
The property located at 65 Broadway in Lower Manhattan (valued at $151.5 million | CF 2019-CF1, MSC 2019-H6) has been transferred to special servicing ahead of its April 2024 maturity date according to Morningstar Credit. Occupancy rates have been steadily declining since issuance and currently sit at just 67%. As a result of this decline in occupancy and revenue, net cash flow for the property is down by 15%, resulting in a DSCR of only 1.02x.
Princeton Pike Corporate Center (valued at $129 million | MSBAM-2016-C28 , MSC-2016-UB9 , BACM -2016 UB10 , MSBAM -C29 ) has also transferred into special servicing due to monetary default as reported by March remittance data from Morningstar Credit . This office campus located near Princeton has seen declining occupancy since last year when it fell below underwritten levels.
Westbrook Partners received notice of default on their loan tied with Four Seasons San Francisco hotel which they acquired for $126.6 million back in December of last year according to San Francisco Business Times . The company is currently behind more than three million dollars on their loan payments which they haven’t made since December.
In Portland Oregon Live reports that Cypress Equities affiliate who owned Lloyd Center mall until late last year but still owns Sears store hired Hilco Real Estate firm following filing for Chapter 11 bankruptcy in December with over ten million dollars in liabilities to sell the nearly 143,000 square foot property. The company is soliciting bids until April 17th and bidders must prequalify to participate.
The owner of the office portion at Harbourside North located at 2900 K St. NW filed for Chapter 11 bankruptcy this week according to Washington Business Journal . This filing does not include residential condominiums on sixth floor but shows that largest creditor is an affiliate of Allegiance Investment Advisors LLC owed almost $1.9 million related ground lease on property.
In a positive sign for landlords seeking new debt, Atlanta Business Chronicle reports that Wildwood Center located in Cobb County has secured a $65-million loan which matures March of next year from Franklin BSP Realty Trust Inc., providing some relief after being added last year CMBS loan-servicer watchlist due its mortgage expiring last year.
