Marathon Asset Management acquired 263 W. 34th St., a newly developed office property in Manhattan, through a foreclosure auction. The investment fund paid $16.5 million for the property, which had an estimated development cost of $90 million. According to reports, Marathon was one of the creditors of developer Churchill Real Estate and took control after the property accrued outstanding liens totaling $65 million as of May.
At another auction, Goldman Sachs Urban Investment Group paid $10 million to retain ownership of Empire Outlets – New York City’s first and only outlet mall – ending a two-year foreclosure process and removing original operator BFC Partners from the picture. The 340,000-square-foot mall on Staten Island opened in 2019 but went into foreclosure in 2022.
The Brookwood Office Portfolio loan worth $325.4-million (JPMCC-2019-BKWD) was transferred to special servicer earlier this month due to maturity default reported by Morningstar . With an expected modification discussion soon and transfer reflected next month’s remittance report; it has not met its required debt yield threshold for extension until September 2024.
According to Kroll Bond Rating Agency (KBRA), delinquency rates among KBRA-rated U.S CMBS increased by nine basis points reaching up-to four-point-two-five percent while total delinquent loans rose sharply at six-point-seven-five percent with twenty-one new distressed office properties mainly driven by imminent or actual maturity defaults including State Farm Portfolio ($383M across four conduits), DUMBO Heights Portfolio ($180M across CGCMT-2018-C6 & Benchmark-2018-B8) &1615 L Street ($134.M across JPMBB-13-C15& JPMCC13-C16).
Houston-based Silver Star Properties REIT Inc.’s indirect subsidiary Hartman SPE LLC filed voluntary petition under Chapter11 Bankruptcy Code allowing an orderly sale of its assets to pay undisputed creditors in full, complete refinance of maturing senior indebtedness and maximize capital for Silver Star’s redeployment into self-storage asset class. Fitch Ratings affirmed ratings on all classes of CSMC-2020-WEST Commercial Mortgage Pass-Through Certificates, Series 2020-WEST with negative outlooks due to slower-than-expected recovery from the pandemic. The certificates represent beneficial interests in trust loan portion worth $400M secured by fee simple & leasehold interests in regional mall ‘The Westchester’ located at White Plains NY.
CRED iQ Research identified Houma Shopping Center located at Houma LA as a distressed loan due to non-performing matured balloon/balloon payment/maturity default; built-in 1995 with debt service coverage ratio falling due to tenant rollover.
This week’s Return To Lender report highlights major developments and transactions within the commercial real estate industry without mentioning any specific company names or brands. Marathon Asset Management acquired a newly developed office property through foreclosure auction while Goldman Sachs Urban Investment Group retained ownership of New York City’s first outlet mall after two years-long foreclosure process. A significant transfer was made for Brookwood Office Portfolio Loan which has not met its required debt yield threshold for extension until September 2024 according Morningstar reports whereas Kroll Bond Rating Agency (KBRA) reported an increase in delinquency rates among KBRA-rated U.S CMBS loans mainly driven by maturity defaults including State Farm Portfolio ($383M across four conduits), DUMBO Heights Portfolio ($180M across CGCMT-2018-C6 & Benchmark -2018-B8) &1615 L Street($134.M across JPMBB13-C15& JPMCC13-C16). In other news, Houston-based Silver Star Properties REIT Inc.’s indirect subsidiary Hartman SPE LLC filed voluntary petition under Chapter11 Bankruptcy Code allowing an orderly sale of its assets to pay undisputed creditors in full, complete refinance of maturing senior indebtedness and maximize capital for Silver Star’s redeployment into self-storage asset class. Fitch Ratings affirmed ratings on all classes of CSMC-2020-WEST Commercial Mortgage Pass-Through Certificates, Series 2020-WEST with negative outlooks due to slower-than-expected recovery from the pandemic while CRED iQ Research identified Houma Shopping Center located at Houma LA as a distressed loan due to non-performing matured balloon/balloon payment/maturity default; built-in 1995 with debt service coverage ratio falling due to tenant rollover.
