A San Francisco Superior Court judge has appointed a receiver for the Westfield San Francisco Centre in response to a lawsuit last month. The lawsuit was filed on behalf of the lenders of Westfield’s defaulted mortgage, totaling $558 million. According to the San Francisco Business Times, Superior Court Judge Charles F. Haines has appointed Gregg Williams from Trident Pacific to take possession and control of the mall.
In another development in San Francisco, locally based company The Prado Group acquired loans behind a portfolio of over 300 apartments owned by Veritas Investments. This acquisition was made possible through purchasing a mortgage portfolio tied to 20 buildings and 304 units from Veritas’ lender, an affiliate of New York-based Mack Real Estate Credit Strategies. The deal closed at the end of September as reported by the San Francisco Business Times.
According to Bloomberg News reports, S&P Global Ratings is considering downgrading Brookfield Property Partners due its high amount maturing debt during times with higher interest rates and lower property values.The rating agency had previously lowered Brookfield Property’s issuer credit rating in July 2021 and now has it on credit watch with negative implications.
The PacStar Retail Portfolio recently reported that its appraised value decreased by 20% since November2022.This loan is secured by two retail properties: Yards Plaza in Chicago and Willowbrook Court Shopping Centerin Houston accordingto Morningstar.The loanhas been delinquent for over90 daysand under special servicing since October2021due largelytothe Toys R Us bankruptcy caseof2017which resulted intoa legal battle.
A lender foreclosed ona real estate loanforan Oakland residential development project consistingof1032unitsreportedby Mercury News.SanFrancisco-based Panoramic Developmenthad originally proposed this housing projecton500 Kirkham St., which they purchasedfor$7millionbackin2017.However,a $6millionloanmadeby CPIF California (controlledby Columbia Pacific Advisors)in 2021fell into default in March of this year, ultimately leading to the foreclosure.
DBRS, Inc. downgraded its credit ratings on11classesof Commercial Mortgage Pass-Through Certificatesissued by Citigroup Commercial Mortgage Trust2017-P8.Another10 classes were confirmed at AAA,but DBRS Morningstar changedthe trends on four of those classes from stableto negative.The downgrade and negative trend reflect concerns surrounding the pool’s exposure to office properties (representing33.5%of current balance)and declining performance metrics for several other loans in the pool.
A lender is foreclosingon a loan tied to Montgomery Park office complexin Portland,Oregonownedby Unico Properties and Partners Groupreportedby Puget Sound Business Journal.In addition,Turner Construction Co.is escalatingits fightto recoup what it claims Seattle-basedUnicoand Swiss-based global private equity firmPartners Groupowedfor workat MontgomeryPark.The general contractorfiled a $3.7million lawsuit againstthe ownership groupon Oct 3rd.Meanwhile,Unicohas indicated their willingnesshand over keys ofSeattle’s Colman Buildingtoa lender accordingtoa loan servicer note dated Sept15th.Unicohas been workingfor about two years converting upper floorsinto residencesatlate-19th-centuryoffice buildinglocated at Pioneer Squareedge.
Fannie Mae announced its latest sale of non-performing loans as partoftheir ongoing effortsto reduce size their retained mortgage portfolio.This includesGSE’s22ndCommunity Impact Pool(CIP),which consists approximately1555loans totaling$217 millionunpaid principal balance.Additionally,the CIPincludesapproximately60loans totaling$18millionUPBgeographically locatedin New York area.Allpools are available for purchase by qualified bidders.This saleis being marketed incollaboration with BofA SecuritiesInc.and First Financial NetworkInc.as advisors.Bidsare dueon the one large poolby Oct 31stand onthe CIP by Nov 16th.
