According to the Minneapolis/St. Paul Business Journal, Lowry Apartments in downtown St. Paul was recently sold at a foreclosure auction for $7 million to the owner of the unpaid mortgage, Lowry Apartments LLC (a subsidiary of Colliers). The 11-story, 134-unit apartment building is located at 345 N. Wabasha St., and was previously owned by Madison Equities based in St. Paul.
The Kansas City Business Journal reports that after months-long Chapter 11 bankruptcy proceedings, one of Kansas City’s oldest skyscrapers may be transferred from its out-of-town owners to a lending institution responsible for addressing blight and security issues. In 2019, Axis KC LLC purchased the Scarritt Building (12-stories) and conjoined four-story Scarritt Arcade with plans for hotel/coworking offices or apartments/retail space; however these plans never came to fruition.
In another situation involving Augustine Development Group and DLP Capital reported by Jacksonville Business Journal , Augustine faces a foreclosure lawsuit on their long-abandoned Ambassador Hotel property as DLP Capital through Good As New Ventures LLC has sued Axis Hotels LLC (associated with Augustine Development Group) stating they have not paid their judgment amount plus per diem interest totaling over $10 million.
The Atlanta Business Chronicle reports that Frankforter Group defaulted on their loan valued at $104.4 million for Generation Atlanta – an upscale residential tower in Downtown Atlanta which they acquired late last year for record-breaking price of $126.9 million.
Morningstar Credit reported that City Club Apartments Lafayette Park ($28.l1million |4.l%of FREMF2022-KF139), located in Detroit has been moved into special servicing due to declining performance with occupancy dropping from97%at issuanceto68%asof March2024and net cash flow below breakeven levels during this time period.
Additionally, Morningstar Credit also reported that Sutter Ranch, a 228-unit multifamily property in Houston with an $18.2 million loan (4.5% of FREMF 2021-KF114), has been moved to special servicing after falling delinquent. While the revenue for 2023 exceeded underwritten levels, elevated expenses caused net cash flow to decrease from $1.32 million at issuance to $1.06 million in March 2024 and occupancy dropped from 97% at underwriting to 90%.
