Lender Arden Group successfully acquired the Margaritaville Resort Times Square Hotel through a Uniform Commercial Code foreclosure auction. The hotel’s previous owner, Sharif El-Gamal’s Soho Properties, filed for Chapter 11 bankruptcy protection three months prior to the auction. Newmark brokers facilitated the auction after it was postponed due to Soho’s bankruptcy filing.
In Dallas, lenders holding millions of dollars in debt on an office tower are moving forward with foreclosure proceedings. Whitestone Uptown Tower LLC disclosed that it had defaulted on over $14 million in debt and a trustee has been appointed to undertake foreclosure of the property.
Fortress Investment Group purchased Brooklyn’s Bushwick Generator site for $25.5 million through a foreclosure process initiated against Toby Moskovits’ Heritage Equity Partners in 2019.
A mortgage backed by San Francisco’s One Union Square building is heading towards special servicing after defaulting on its maturity date this month. The loan was originally provided by Citigroup Inc., but has since been transferred to special servicing with LNR Partners LLC as the servicer following default on its balloon payment maturity date.
CIM Group and QSuper will relinquish ownership of Midtown Manhattan office tower 1440 Broadway after their CMBS loan went into special servicing earlier this month due to declining property value since its acquisition in 2017.
An appraisal conducted last July reduced the value of Manhattan office building at 315 W,36th St from $127 million at issuance down to just $42.4 million currently due largely because WeWork vacated and stopped paying rent despite occupying most of GLA until leases were set expire between now and next year (2031-2032).
The loan backing Houston-based One Westchase Center also transferred into special servicing instead maturing this month as scheduled according Morningstar reports citing comments stating payoff expected upon maturity before pointing out extension more likely outcome than full repayment given previous special servicing and new servicer’s comments. The collateral is a 466,159-square-foot office in Houston’s Westchase District.
Fitch Ratings downgraded ten classes and affirmed eight classes of CSAIL 2017-CX9 Commercial Mortgage Trust, commercial mortgage pass-through certificates, series 2017-CX9 (CSAIL 2017-CX9). The downgrades were primarily due to the concentrated pool nature of the remaining loans which are mostly secured by underperforming office properties.
Hear from industry leaders on distressed assets at Connect Investment & Finance Conference on Oct.24th in Rosemont IL for insights into current market conditions and what’s next in this cycle. Register here for up-to-the-minute information.
