The Boston Business Journal has reported that a foreclosure auction is scheduled for March 20 on One Lincoln St., one of the largest office buildings in Boston. The building’s owner, Fortis Property Group, has not been able to recover from the loss of its previous namesake tenant, State Street Corp. This is the first time a property of this size will be up for auction locally and it is currently assessed at $588 million. However, three years ago Fortis took out a refinancing loan worth $1 billion.
According to the Sacramento Business Journal , an office building in South Natomas with over 80,000 square feet will go up for online bids on March 31 after falling into receivership. The building located at 2750 Gateway Oaks Dr., also known as Crown Plaza II,is currently only about half occupied and will have a starting bid of $1.75 million.
The South Florida Business Journal reports that Fannie Mae may seize control over an apartment complex in Miami Beach due to a foreclosure lawsuit worth $2.27 million filed against Noble Florida Property LLC by the government-backed lender.The complaint was filed on Feb13th regardingthe eight-unit apartment complex located at2822 Pine Tree Dr.Fannie Mae has requested thata receiver be appointedto manage boththe real estateand financesof this property.
Morningstar Credit reportedthat Duane Morris Plazaat30 S17th St.in Philadelphiahas movedto special servicingfor reasons unknown.Although cash flowwas downby approximately11%compared tounderwritingduringthis period,the DSCR remained strongat2 .11x (onan interest-only basis).This could potentiallybe dueto thenamesake tenant’s lease expiringinMarch2026.However,it should benotedthatcash flowhad alreadybeen decliningbefore their departure,and two smaller tenantsalsohave leases expiringin February2025withunknown renewalstatus.Morningstar Credit also notedthat Aspen Lake Business Center, a loan worth $65 million and accounting for 8.7% of UBSCM 2018-C9, has transferred to special servicingafter major tenant Zimmer Biometvacated in December2024.This resultedin the cash flow falling below breakeven.Zimmer Biometoccupied43%ofthe GLAin one of the three Austin office propertiesbackingtheloanand accountedfor23%ofthe collective space.Before their departure,the cash flow was already downby18%during2023.Two smaller tenantsalsohave leases expiringduringFebruary2025withunknown renewalstatus.
Finally,Morningstar Credit reportedthat two loansworth$51.1million have been transferredto special servicingdue topayment defaultand non-compliance with lockbox accounts.These loans are cross-collateralized/cross-defaulted Chicago Business Center and Chicago Marketplaceloans (5.6% of BBCMS 2022-C14 | CMBX .16).Although performancehas remained stableatthese industrial properties,a lockboxwas activated after READ Production Studios,the largesttenant,gave notice that they plan to vacateChicagoBusinessCenterbeforetheir lease expirationdate in April 2027.
