Park Hotels & Resorts Inc. announced on Thursday that the trustee for a $725 million CMBS loan has filed a lawsuit due to non-payment. The trustee is seeking the appointment of a receiver to manage and sell two hotels securing the loan: Hilton San Francisco Union Square and Parc 55 San Francisco. The receiver will have until Sept. 1, 2024 to complete any sales.
The former site of Opus Place in Atlanta’s Midtown neighborhood is facing foreclosure after failing to pay off its $40 million debt from last August’s refinancing with Benmark Capital.
Blackstone is currently negotiating with special servicer CWCapital in hopes of surrendering four Club Quarters hotels located in Chicago, Boston, Philadelphia, and San Francisco after defaulting on their $274 million loan secured by these properties.
Two office towers in St. Louis are facing financial distress according to reports from local business journals. One tower was put into special servicing after losing its sole tenant while another property may be forced into receivership due to failure of repayment on a previous loan.
Morningstar reported that Brass Professional Center ($55.8 million) has been sold at auction by LNR Special Servicing who won the foreclosure sale back in June when it moved into special servicing status.
Fashion Outlets of Niagara Falls ($86 .2million) may also be moving towards special servicing as owner Macerich looks for potential buyers for this property which previously received an extension until October 2023 but failed payment modifications made earlier this year.
340 Bryant ($30 .9million), an office property located in San Francisco saw its appraised value drop significantly since issuance due WeWork vacating space causing it move into special servicing status where it may soon become REO (real estate owned).
Grant Building ($36 .7million), an office building located Pittsburgh recently moved into special serving as cash flow fell below break-even despite maintaining high occupancy rates possibly due to lower rental rates.
