Introducing a new weekly feature, “Return to Lender,” as part of our expanded coverage on distressed assets. This feature will cover properties that have gone through foreclosure and have been or will soon be auctioned off, as well as those that have become REO or recently transferred to special servicing.
According to Crain’s Chicago Business, a venture of Skokie-based American Landmark Properties defaulted on a $95.5 million loan for the Schaumburg Towers office complex in Illinois. The lender Prime Finance Partners has filed a lawsuit claiming American Landmark failed to pay off the mortgage when it matured in June 2023 and now owes over $83 million including outstanding loan balance and fees.
A CMBS loan worth $104.7 million secured by 32 office and industrial properties in Pennsylvania’s Lehigh Valley has moved into special servicing after the borrower requested modifications before its January 2024 maturity date.
The Doubletree Norwalk hotel backed by COMM 2015-CR23 with an original value of $17.3 million was liquidated at a loss after being held in special servicing for six years and four years as REO with an appraisal value matching its liquidation price according to Morningstar reports.
In recent comments from the servicer regarding GSMS 2018-GS10 collateralized by GSK’s North American headquarters located at Philadelphia Navy Yard, it was stated that there is no longer mention of extending maturity or providing new equity capital options for this single-tenant asset built specifically for GSK.
BBCMS 2018-CBM reported transferring their entire portfolio worth $421.3 million into special servicing due to inability from borrowers’ end either extend or pay off their July maturing loans which they are requesting extensions on while also citing increased insurance premiums causing financial deficits during June-July months leading up until now according Morningstar reports.
Trepp reported earlier this month about August’s largest CMBS loan transfer to special servicing, the $274 million NEMA San Francisco loan. This multifamily high-rise property secured by 754 luxury apartment units and 13,415 square feet of commercial space was built in 2013 and renovated in 2020. It is split between a single-asset single-borrower deal (NCMS 2019-NEMA) and two conduit deals (BBCMS 2019-C3, BBCMS-5).
Hilco Real Estate LLC announced that September’s qualified bid deadline for Chapter11 bankruptcy sale of a Midtown Manhattan hotel located at442 W36th St., has passed. The unflagged non-union hospitality asset presents an opportunity to acquire one of the most sought-after locations within New York City according to Hilco with assumable financing available at only5.2% interest rate which represents cash-equivalent savings worth $2.2 million over remaining72-month term as per Order No:22-bk40563(JMM), In re:36th Street Property Inc., U.S.Bankruptcy Court District Eastern New York.
Also up for grabs is East Village’s historic former Public School64 now operating as community center since closing down its school operations back in1977.Hilco stated that this property could be developed into student/college dormitory accommodating535 beds or alternatively used towards mitigating current homeless/migrant crisis if acquired by developer/investor instead.The sale process will be conducted under Order No:23-10423-dsj,in re:9th &10th Street LLC,U.S.Bankruptcy Court Southern District OfNewYork(Manhattan).
