Return to Lender: Week of August 22, 2024

201 N. Charles St., an office property in downtown Baltimore, sold on August 15 for $3.1 million via an online auction on TenX to an unidentified buyer, according to the Baltimore Business Journal. State records show the seller was RSS Comm2013-LC13-MDH2L LLC, the lender for the building’s loan that acquired the property at a foreclosure auction in 2022 for $4.1 million.

The Mall De Las Aguilas loan ($21.7 million | MSC 2015-UBS8) was liquidated as of the August 2024 remittance with the trust realizing $12.2 million in losses, Morningstar Credit reported. The loan backed by an Eagle Pass, TX shopping center was originally moved to special servicing in June 2020, eventually becoming REO in July 2021. The loss wrote down class H and eroded class G by $6.4 million.

A four-story, mixed-use South End building, once the home of real estate firm The Davis Cos., is set to be auctioned off, the Boston Business Journal reported. One Appleton, located at 439-441 Tremont St. in Boston, is scheduled for a foreclosure auction on Aug. 28, according to a notice from auctioneer Paul E. Saperstein Co. Since April, the building’s mortgage has been held by a limited liability company affiliated with Peter Zagorianakos of local real estate development and investment firm Triad Alpha Partners.

A loan backed by Atlanta Financial Center in Buckhead has hit the market and is expected to sell at a discount, the latest sign of trouble in the U.S. office property sector, reported the Atlanta Business Journal. Cushman & Wakefield is marketing the loan, with a balance of $122.5 million. It’s expected to sell at a significant discount. The nearly one-million-square-foot office property is owned by an affiliate of New York City-based Sumitomo Corp. of Americas.

Madison Realty Capital has filed to foreclose against $81.51 million of mortgage debt it holds on the 155-key Fifth Avenue Hotel in Manhattan, reported Trepp. MRC made its filing in New York Supreme Court. It claims that the debt it holds, which it had acquired from Santander Bank earlier this year, had defaulted at its maturity in March. The 116-year-old collateral property at 1 W. 28th St, is owned by Empire Management of New York, which in 2013 acquired what then was a 90,000-square-foot office building for $15 million and converted it into a hotel. It added a building as part of the redevelopment.

New York-based REIT BrightSpire Capital is putting on the market a downtown Oakland, CA office tower it acquired from Tidewater Capital last summer, the San Francisco Business Times reported. Tidewater returned its 10-story, 83,000-square-foot office tower at 1440 Broadway to its lender, BrightSpire, in July 2023 in lieu of a foreclosure process. BrightSpire originally tapped CBRE to lease up the 44% occupied property, but has now listed it for sale, again with CBRE handling the listing.

17 State Street ($180.0 million | JPMBB 2014-C23 & JPMBB 2014-C24 | CMBX.8) has moved to special servicing after failing to pay off at its August maturity date, according to Morningstar Credit. Backed by an office property in Lower Manhattan, the loan had previously remained current throughout its loan term, most recently reporting a full year DSCR in 2023 of 3.58x and occupancy in the mid-90% range. Net cash flow in 2023 was 16.7% above the underwritten level.

Morningstar Credit reported that 16 Court Street ($111.0 million | CCUBS 2017-C1 & WFCM 2017-C42 | CMBX.11) has also moved to special servicing as near-term lease expirations will likely result in shortfalls to the debt service payments. The Brooklyn office has concentrated exposure to City of New York tenants, the largest of which has a lease expiration this month. The building’s website shows a fair number of availabilities.

A CMBS loan backed by 1166 Ave. of the Americas ($85.0 million | BBCMS 2017-C1 & WFCM 2017-RB1) has moved to the special servicer for “imminent monetary default,” reported Morningstar Credit. Although the loan still reports 100% occupancy, servicer commentary has been reporting that the largest tenant, D.E. Shaw in 43% of the space, will vacate at lease expiration this month. In addition to the trust debt, there is $25 million in secured subordinate debt and $20 million of mezzanine debt in place.

Morningstar Credit reported the Bank of America Plaza ($42.8 million | 4.2% of CGCMT 2017-P8 | CMBX.11) has moved to special servicing ahead of its September 2024 maturity. The property, in the Detroit suburb of Troy, MI, lost its namesake tenant when Bank of America vacated in 2022, dropping occupancy from 91% to 54%. It’s the third ‘Bank of America Plaza’ loan currently in special servicing, joining the BofA Plazas in Los Angeles and St. Louis, as well as the Bank of America Center in Richmond, VA and the Bank of America Tower in Midland, TX.

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