Return to Lender: Week of June 13, 2024
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June 13, 2024
- Austin-based commercial real estate lender Equity Secured Investments Inc. won the rights to the land at 151 E. Travis St. in down San Antonio a June 4 foreclosure auction, reported the San Antonio Business Journal. Harris Bay, a developer with offices in San Antonio and California, acquired the riverfront site in 2019 with plans to develop a boutique hotel. The developer took out a $2.1-million loan on the site as part of its plans, much of which it still owed as it defaulted on the loan.
- Empire Capital Holdings and Namdar Realty Group struck a deal to buy the office property at 321 W. 44th St. for less than $50 million, Bloomberg News reported. That’s a 67% discount compared to the nearly $153 million paid by Related Fund Management in 2018. The deal represented a short sale, since the balance on the property’s mortgage exceeds $100 million. Such sales have become increasingly common in the office sector as property values are underwater.
- Brooklyn Tower’s foreclosure auction has been postponed in favor of settlement talks with the developer. The auction scheduled for 9 DeKalb Ave. at 10 a.m. Monday was called off by lender Silverstein Properties, reported Crain’s New York Business. Following the postponement, Silverstein said it was in settlement talks with developer JDS Development, which defaulted on a $240-million loan this past March.
- The Houston Business Journal reported that Jetall Capital, the Houston-based investment firm run by Ali Choudhri, is facing another legal dispute stemming from alleged financial problems facing a property the company owns. The latest dispute saw a federal bankruptcy judge throw out a temporary restraining order that sought to block a lender from foreclosing on 50 Briar Hollow Lane. The two-building, 193,615-square-foot complex is near the intersection of Post Oak Boulevard and Briar Hollow Lane just inside the Interstate 610 Loop near Houston’s Uptown/Galleria area.
- A combination Mobil gas station, Budget car rental center and Firestone tire repair shop west of Boynton Beach has been targeted in a $5.55-million foreclosure lawsuit, reported the South Florida Business Journal. Miami-based City National Bank of Florida filed a foreclosure complaint June 6 against West Boynton Auto Services, Spanish River Service, J&L Services of Palm Beach and loan guarantor Jay Charles Seewald of Pompano Beach, over the 6,192-square-foot gas station and service center at 7450 Boynton Beach Blvd.
- Chelsea Pacific Holdings has defaulted on a $30-million loan against the Chancery Building, a 59,100-square-foot office property in San Francisco, Trepp reported. The Belvedere Tiburon, CA company, which purchased the property in 2009 for $9.2 million, has been behind on its debt payments since November and owes $1.5 million against it. JPMorgan provided the financing in 2018. A foreclosure sale can take place after Sept. 2, if the default goes unresolved.
- The $140-million CMBS loan on Westfield Main Place in Santa Ana, CA has transferred to special servicing, Morningstar Credit reported. The borrower had requested a 120-day maturity extension which was denied at that time by the servicer. Having now hit its June 2024 maturity, the loan is now in special servicing as expected. The servicer notes an expected resolution date in September 2024, so a loan extension may be in the works.
- ◦Sale/Acquisition
- ◦Financing
