According to a report from the San Francisco Business Times, Highgate has transferred ownership of the 686-room Hyatt Regency San Francisco Downtown SoMa to its lender. The transfer was made through a deed-in-lieu of foreclosure filing on Dec. 11 and involved an affiliate of Blackstone Mortgage Trust forgiving over $290 million in unpaid debt and associated costs. This action was taken after Highgate missed a balloon payment earlier this year on $250 million in debt.
In other news, Ohana Real Estate Investors has purchased the Hyatt Regency Lake Washington in Renton, WA for just over $103 million, as reported by Puget Sound Business Journal . The new owner plans to continue operating the 347-key hotel as a Hyatt Regency. This sale comes after affiliates of Seco, developer of Southport – a large mixed-use development – filed for Chapter 11 bankruptcy.
Meanwhile, Madison Equities’ office building-turned-apartment complex in downtown St. Paul is now under control by its lender according to Minneapolis/St.Paul Business Journal . Minnwest Bank acquired The Degree luxury apartment building via deed-in-lieu for $9.575 million after previously seeking foreclosure through an auction.
The Washington Business Journal reports that Calco Hospitality plans to convert an office building into a hotel following its purchase at November’s foreclosure sale.The property is located at601 Indiana Ave NWand will feature122 rooms along witha penthouse and indoor/outdoor restaurant/bar area.Calco Hospitality intends torebrandthe former Bob Hope Building which had been caught upin adisputeoverthe General Services Administration’s planned consolidationof three related agencies leadingto it losingan anchor tenant.After several attempts,the property soldfor$8.5millionto Houston’s601 Indiana LLCvia substitute trustee’s sale last month.
Pittsburgh-based Gateway Center faces liquidation due topiling bond debtsaccordingto PittsburghBusiness Times .A court rulingin the British Virgin Islands has orderedthe sale of Gateway Center and other assets owned by Hertz Properties Group to pay off nearly $200 million in unpaid bond debt. The court appointed Amir Giryes, principal of Dallas-based Giryes Capital group, as chief restructuring officer for the companyin September after it reportedto bondholders on the Tel Aviv exchange that “ithas significant doubts regardingthe continued existenceofthecompany.”
Station Square,a popular tourist destinationin Pittsburgh,is facing foreclosureby its lender according to Pittsburgh Business Times . Wilmington Trust is leading a group of lenders filinga foreclosure action against three separate corporate entities that own different sections of Station Square: themain complex;Bessemer Court restaurant and entertainment area;and Commerce Court office component.All are affiliatesof Brookfield Properties.
In CMBS news,Morningstar Credit reports that Selig Office Portfolio ($379.1 million | Multiple Conduits | CMBX.9) was transferred to special servicing due to imminent monetary default.The Seattle office portfolio’s occupancy rate has been steadily declining since issuance in 2013,and currently stands at just 67%.The loan is settomature in April2025.
Federal Center Plaza($130 million|54%of COMM2013-CR6)was also movedtospecial servicing aheadof its February2025 maturity date.Morningstar Credit notes weak cash flow as thereasonfor this transfer.The loan wasoriginally scheduledtomatureinFebruary2023butwas modifiedto extenditsterm untilFebruary 2025.However,the property’s performancehas not improvedsince then.
