A San Francisco Superior Court judge has appointed a receiver for the Westfield San Francisco Centre in response to a lawsuit filed last month by lenders of Westfield’s defaulted $558-million mortgage. The move was reported by the San Francisco Business Times. Judge Charles F. Haines has appointed Gregg Williams of Trident Pacific to take possession, custody and control of the mall.
In another development in San Francisco, local company The Prado Group acquired loans behind a portfolio of over 300 apartments owned by Veritas Investments. According to documents recorded with the San Francisco Assessor’s office, Prado paid an undisclosed amount for these loans tied to a 20-building, 304-unit portfolio.
Bloomberg News reported that S&P Global Ratings is considering downgrading Brookfield Property Partners due to high levels of maturing debt and lower property values during this time period marked by higher interest rates. In July 2021, S&P had already lowered Brookfield Property’s issuer credit rating one level above junk status and now it may be further downgraded within three months due its deteriorating financial metrics.
The PacStar Retail Portfolio ($43 million |4% MSB14C19) saw its appraised value drop significantly from $32 million in November 2022to just $25 million as per new appraisal dated July 2023 according Morningstar reports . This loan is currently delinquent more than ninety days and has been special serviced since October2019.The initial stress on this loan came from Toys R Us bankruptcy filing back in September2017 but later turned into legal battle .
A lender foreclosed on Panoramic Development’s project site at500 Kirkham St.in Oakland which was slated for construction as residential development with over1000 units ,reported Mercury News .Panoramic Development bought this site backin May2017for$7millionand took outa$6millionloanfrom CPIF California (an entity controlledby Columbia Pacific Advisors) in 2021. The loan went into default in March this year and eventually led to foreclosure.
DBRS, Inc.downgraded its credit ratings on eleven classes of Commercial Mortgage Pass-Through Certificates ,Series2017-P8 issued by Citigroup Commercial Mortgage Trust2017-P8 .Another ten classes were confirmed at AAA but DRBS Morningstar changed the trends on four of those classes to negative from stable.The downgrades and negative trends are due to increased credit risk relatedto pool’s exposure towards office properties which represents33%of current pool balance along with declining performance metrics for several other loans in the pool .
A lender is foreclosing a loan tied to Montgomery Park office complex locatedin Portland,Oregon owned by Unico Propertiesand Partners Group as reported by Puget Sound Business Journal . Turner Construction Co. has also filed lawsuit against Unico Propertiesand Partners Group seeking payment for work done at Montgomery Park.Unico had been working since past two years converting upper floors of Colman Building (locatedin Seattle)into residencesbut now it seems that they may hand over keys backto lender accordingto a note dated Sept15thbyloan servicer.
Fannie Mae announced saleof non-performing loansas partof their ongoing effortsto reduce size of retained mortgage portfolio including GSE’s22nd Community Impact Pool(CIP).The largepool includes approximately1555loans totaling$217million unpaid principal balance while CIPincludes60loans totaling $18 million UPB,all geographically locatedaround New York area.All pools are availablefor purchaseby qualified bidders.Bidsare dueonlargepoolbyOct31standCIPbysame date next month.Nov16th
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