The Foundry, a 50-year-old office building located in Washington, DC’s Georgetown neighborhood and owned by JBG/Foundry Office LLC, is set to be auctioned during a foreclosure sale on April 11. The property at 1055 Thomas Jefferson St. NW has been excluded from occupancy and financial metrics presented by its owner JBG Smith Properties.
In San Francisco, the lenders of One Union Square are taking control of the building after Ashkenazy Acquisition Corp., failed to repay a $50-million mortgage on the property. US Bank is pursuing judicial foreclosure for the mixed-use property at 200-212 Stockton St. and 172-180 Geary St.
Special servicing activity was reported in February for loans packaged as part of BBCMS2023-C19 transaction according to Morningstar. Five loans transferred during this cycle including properties such as Fort Lee’s mixed-use development backed by Executive ($54 million), Holiday Inn Express – Hesperia ($11 million), Pennbrook Portfolio ($7 million) consisting of small Philadelphia multifamily properties that have been delinquent since October; Brooklyn multifamily properties -350 Fifth Street &372 Baltic Street (6$million) despite reporting full occupancy; and another fully occupied Brooklyn apartment complex at566 Seventh Street($5million).
A loan worth $58.5-million backed by Alliance HP’s One Financial Plaza office tower in Fort Lauderdale was transferred to special servicing due to maturity default according CRED iQ report.The floating-rate interest-only loan originated with Varde Partners in September2019and securitized later through VMC Finance2021-FL4CLO amountingto $927 .9million .
Patrick Henry Mall(40$Million |6%of WFCM2015-SG1|CMBX .9 )was also transferred into special servicing after guarantor filed Chapter11 bankruptcy this month.Morningstar had previously put it under watchlist due to subpar financials. Despite 95% occupancy in September2023, the net cash flow continues to lag issuance for this regional mall located in Newport News, VA.
Hemant Investments LLC of San Francisco has defaulted on a $5.8-million loan for the former Quality Inn at 8471 Enterprise Way in Oakland and has been served with a notice of default.The owner had taken out the loan that was due October2023and accrued more than$76,000in interest.This came after it was selected as part of Project Homekey -a statewide effort- to be transformed into affordable housing units.
The buyer who acquired Trump International Hotel on Pennsylvania Avenue in Washington DC defaulted on a $285-million loan according topublished reports.Miami-based CGI Merchant Group and Hilton closed on the hotel leasehold for $375millionin 2022and rebranded it as Waldorf Astoria within amonthof acquisition.
