According to Morningstar Credit, the note for One North LaSalle, which accounted for 57.8% of CARB 2019-FL2 and was valued at $67.2 million, has been sold at a loss of $58.5 million. The buyer of the note is Namdar who purchased it for approximately $20 million as reported in an article.
The loan on this Chicago office property has been under special servicing since June 2022 and currently only has an occupancy rate of 56%.
Trepp recently reported that Thor Equities defaulted on two retail properties in Manhattan after failing to pay off a total debt amounting to $34.2 million according to Crain’s New York Business . These properties include a 26,000-square-foot space located at 446 West14th St., with outstanding debt worth $21million; and another property measuring around9,000 square feet situated at440 Broadway in SoHo which had backed upa loan worth$9.98million that was securitized backin2013.Maverick Real Estate Partners from New York acquiredthe former through acash bidof$5-millionafter purchasing theloanfrom Granite Point Mortgage Trust two years ago.
As per San Francisco Business Times , there have been changes made by San Francisco Superior Court Judge Charles Haines regarding the deadline setfor saleof HiltonSanFrancisco Union Squareand Parc55 hotels due tonumerous debts.The receiverand lender requestedto extendthe deadline from September1st2024to March31st2025,and also pushed outthe foreclosuredeadline if no sale is finalized,to July15th2025.A recent appraisal showedthat bothhotels combinedhave suffered lossesamountingto more than$1 billion since2016.Previously owned by Park Hotels & Resorts,the hotels were left behindlast yearas they approached maturityon their CMBS loansworth over$725-millionguaranteedby JPMorgan Chase. While still operating under the Hilton brand,the hotels have been in receivershipsince October2023underthe care of receiver Michelle Russo, CEOof Hotel Asset Value Enhancement.
According to Trepp, K-Star Asset Management is expected to foreclose on a $47.5-million CMBS loan for the 149,193-square-foot office building at 222 Kearny St.in San Francisco by August.The loan has not received any interest payments since January and is owned by a venture led by GEM Realty Capital which acquired it in 2019 for $74.5 million.However,cash flow decreased significantlyto an annualized amount of only$2.74million last year compared to the projected annual cash flow of$5.15 million during underwriting.Meanwhile,the occupancy rate has also droppedto just65% as reportedlast September.
Trepp recently reported that Edward J.Minskoff Equities defaulted on their $250-millionloanfor The Bluffs,a500,000-square-foot office property locatedin Playa Vista,CAlast renovatedin2021.The debt was providedby Morgan Stanley in2016when Minskoff boughtthe property worth over$413million.Although therecent renovationwas completed,thispropertyis currently availablefor leasewith more than halfits space vacant.Foreclosure proceedings can take placeafterSeptember12thif no resolutionis reached.
The Minneapolis/St.Paul Business Journal statedthat U.S.Bank Trust Co.is suingto forecloseon two buildingsat Excelsior Crossingslocatedin Hopkins,MN due to defaultson loans taken outby current owners.A lawsuitfiled against Bridge Investment Group claims that they failedtopaytheirloansbackinJanuaryandU.S.BankTrustCo.,representedbyspecial servicer LNR Partners,is seekingan accelerated paymentof $63 millionoutofthe originalloanamountingtoa total of$88million.Thisfailuretomeetpaymentobligationsisconsideredadefault,givingthebanktherighttoforecloseon the property.
Morningstar Credit reported that US Bank Centre, a $31.5-million loan representing 3.4% of BANK 2019-B16, has been transferred to special servicing due to a decrease in occupancy levels.The loan was secured bya256,000-square-foot office buildingin Clevelandandhas experienceda steady declineinoccupancy over the years from96% at originationto only74%attheendof2023.ThisresultedinanegativeDSCRfortheloan,makingitunabletomeetitsfinancial obligations.
