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• 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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• Urban Edge Properties has lost the Kingswood Center mixed-use property in Brooklyn to foreclosure, reported Trepp. The REIT had purchased the property, at 1630 East 15th St. in the borough’s Midwood section, in 2020 for $88.8 million, subject to the assumption of a $65.5-million securitized mortgage. Last August the property was placed in the hands of a receiver, Investment Property Realty Group of New York. Earlier this year, the property was appraised at a value of $49.1 million. 

• An unidentified investor submitted the high bid of $8.5 million, or just more than $9/sf, for the 920,000-square-foot former Sports Illustrated office building at 135 W. 50th St. in Midtown Manhattan, Trepp reported, citing The New York Times.  The building is owned by UBS Realty Investors, which acquired a leasehold interest in it in 2006 for $332.85 million. At the time, the building was 80% occupied. UBS then acquired the ground lease for $279 million in 2012, and sold it to Safehold in 2019 for $285 million. The property is now 35% occupied. UBS earlier this year put the building up for sale through JLL Capital Markets, which took offers last Wednesday on the Ten-X auction platform. It had set a $7.5 million minimum bid. Whether the $8.5 million high bid met the reserve price set by UBS couldn’t be determined.   

• The Houston Business Journal reported that one of Houston’s most recognizable downtown office complexes has a new owner following a foreclosure auction. Houston-based Interra Capital Group paid an undisclosed amount to acquire the historic Esperson complex at 808 Travis St., which includes the Niels and the Mellie Esperson buildings. Although terms of the transaction were not disclosed, Harris Central Appraisal District records said the complex had an assessed value for tax purposes of $42.5 million as of Jan. 1. The 600,000-square-foot Esperson complex has been owned by Houston-based Cameron Management since 2012, when it acquired the property from Seligman Enterprises.

• Los Angeles County has tentatively agreed to pay $215 million for the Gas Company Building in Downtown LA, the Los Angeles Times reported. The sale must still be approved by the county’s Board of Supervisors. If the sale goes through, the county would move workers and services out of existing county offices. The 52-story office tower at 555 5th St. was appraised at $632 million in 2020. The property’s ownership, a Brookfield Asset Management affiliate, defaulted on its debt last year and the property went into receivership. 

• Longfellow Real Estate Partners is at risk of eviction from its Emeryville, CA property, casting doubt on its already scaled-back plans to build a life sciences campus there. The San Francisco Business Times reported that the Boston-based life sciences developer is allegedly behind on rent payments for its 128,000-square-foot property at 1650 65th St. called the Atrium, and has not complied with a lease termination notice from its landlord, PSAI Real Estate. Longfellow entered a four-decade ground lease at the property in spring 2021, with plans for a 750,000-square-foot life sciences campus. However, the developer scaled back those plans the following fall, intending instead to renovate the existing building while also acquiring the neighboring 6601-6603 Shellmound St. Both properties appear to be vacant, the Business Times reported. Longfellow told the Business Times it’s in discussion with the landlord on a possible modification of the ground lease. 

• St. James Plaza, a 148,000-square-foot San Jose, CA office property owned by WeWork founder Adam Neumann, faces an August 9 balloon maturity on the mortgage. The property has been mostly vacant for the past four years, according to the Silicon Valley Business Journal. Its mortgage, currently with a balance of $31 million, has been in default since August 2023. 

• KKR Real Estate Finance Trust (KREF) is in discussions to sell two more properties in Philadelphia’s Old City after recently unloading two buildings nearby. KREF is looking to sell the 209,700-square-foot office building at 325 Chestnut St. and the 469-spot Bourse parking garage at 400 Ranstead St, reported the Philadelphia Business Journal. The firm recently sold the Bourse building and 400 Market St. to Lubert-Adler Real Estate Funds and Keystone Development and Investment for a combined $41 million. KREF, a subsidiary of New York alternative investment giant KKR, took control of the four Old City buildings in December through a deed in lieu of foreclosure from Washington, D.C.-based MRP Realty. 

• Columbia Property Trust, which developed a 182,305-square-foot office building at 799 Broadway in Greenwich Village, is looking to sell it and has hired Eastdil Secured to find a buyer, Trepp reported. The 12-story building, now 71% occupied, was developed on the site of what had been the St. Denis Hotel. Columbia Property, a unit of Pacific Investment Management Co., had funded the property with a $270 million-loan from Blackstone Mortgage Trust in 2022, when the building opened. The loan has since defaulted.   

• A two-year extension was approved this month for 1670 Broadway in Denver ($73.0 million | UBSCM 2018-C13 & UBSCM 2018-C14 | CMBX.12), extending the maturity to September 2025, reported Morningstar Credit. The loan, backed by a 709,415-square-foot office property in Denver, was transferred to the special servicer in August 2023 due to imminent maturity default. A November 2023 appraisal valued the property at $131.1 million, a 45% reduction from the appraised value at issuance, but still well above the outstanding loan balance. The largest tenant, TIAA (accounting for 33% of the GLA and 56% of underwritten base rent), has a lease expiration in December 2029. There’s also a $64.8-million mezzanine loan as part of the total financing. 

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• One of the two original developers behind the Tri-County Mall project has formed a new ownership group and completed the repurchase of the Springdale, OH property, reigniting hopes for its $1-billion transformation into a mixed-use development, the Cincinnati Business Courier reported. Houston-based MarketSpace Capital re-acquired the 76-acre property through AV Cincinnati Acquisition LLC. MarketSpace and Dallas-based Park Harbor Capital originally bought the mall in March 2022 with a loan from Utah-based Reef Private Credit. The Texas developers defaulted on the loan late last year, prompting Reef to launch a foreclosure suit. The parties reached a settlement in May, in which they had until June 2 to come up with $28 million to repurchase the property. The developers paid $400,000 to extend the repurchase window through the first week of July. 

• The venture between Affinius Capital and Patrinely Group that owns the 263,171-square-foot Columbus Center office property in Coral Gables, FL, is in talks to turn it over to its lender in a deed-in-lieu of foreclosure, reported Trepp. The property is encumbered by what now is a $67.39-million loan that Varde Partners had provided at the end of 2020.  The Affinius/Patrinely venture had planned to renovate the 14-story property, at 1 Alhambra Plaza, about six miles west of downtown Miami, to increase occupancy to a projected 83%, as certain tenants were expected to vacate. However, occupancy has struggled. As of March, the property was 62% leased, down from 68.8% in early 2021.  

• Trepp reported that a group led by local developers Thomas Roszak and Mike Moceri is handing over a 210,318-square-foot office property at 145 S. Wells St. in Chicago to its lender through a deed-in-lieu of foreclosure. The property is encumbered by a $56.8-million loan that an affiliate of Fortress Investment Group provided in November 2021. The loan faces its initial maturity in December. Roszak and Moceri developed 145 S. Wells in 2019. Last year, it was 50% occupied and operated at a cash flow deficit, according to servicer data compiled by Trepp. It was expected to reach a 90% occupancy rate and generate $5.64 million of cash flow.  

• Hennepin County officials have issued a formal legal notice to sell Wells Fargo Plaza, a 24-story office tower in Bloomington, MN just off Interstate 494, during a September foreclosure auction open to the public, the Minneapolis/St. Paul Business Journal reported. The owners of the 450,000-square-foot building at 7900 Xerxes Ave. defaulted on a $44.8-million mortgage on the property, according to a notice filed July 3 by the lawyer for the lender. A foreclosure auction is scheduled for Sept. 12 at 10 a.m. at the Hennepin County Sheriff’s Office in downtown Minneapolis.  

• Three North Texas multifamily properties owned by California-based Tides Equities LLC are facing potential foreclosure as the real estate investment firm deals with fallout from an aggressive buying spree earlier this decade. The Dallas Business Journal reported that apartment complexes in Fort Worth, Arlington and Dallas have been listed for foreclosure auctions in early August. They include the 176-unit Tides on Avril in west Fort Worth, the 296-unit Tides on North Collins in Arlington and 322-unit Tides on McCallum South in Far North Dallas. Outstanding loans on the properties total nearly $90 million. Several of Tides’ other properties in DFW have faced foreclosure threats and a couple have already been sold. 

• Morningstar Credit said the July reporting period shows a number of loans in Freddie Mac deals moving to special servicing. While the vast majority are small balance loans, two larger loans movedas well. Capital Crossing Apartments ($42.8 million | FREMF 2019-KF73) transferred for imminent monetary default after reporting a sub-1.00x DSCR for several years. The property in the Maryland suburbs of Washington, DC has maintained revenue above the underwritten levels, but expenses have nearly doubled. Meanwhile, the Pavilion Apartments ($37 million | FREMF 2017-K726) moved as a maturity default after a 60-day deferral window to refinance the loan expired. The Newark, NJ property reported very strong metrics at year-end 2023 with net cash flow 34.4% higher than issuance levels and 100% occupancy.

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