Brookfield emerged as the top bidder in an auction held on Jan. 18 for a distressed portfolio of 62 apartment buildings in San Francisco. The properties were previously owned by Veritas and had defaulted on their mortgages, leading to the auction. Brookfield acquired the mortgages for these properties along with others last month, adding a total of 2,165 apartments across various neighborhoods to its portfolio.
According to reports from Denver Business Journal , several iconic office properties in downtown Denver are facing financial struggles due to high vacancy rates caused by the pandemic. These include Republic Plaza, Wells Fargo Center, Writer Square,Columbine Place,and Capital Center which collectively owe $617 million to lenders.
Mack Real Estate is set to foreclose on two construction loans totaling $262 million secured by two sites in Irvine that were intended for multifamily development.The loans were originally taken out by TA Partners and scheduledto maturein2027.However,the project has faced delays and now faces foreclosure proceedings.
A securitized loan worth $148 million backed partiallyby One Pierrepont Plaza,a Brooklyn Heights office property,is heading towards special servicing after Brookfield Property Partners failedto pay it off when it became due last month.The loan also includesa mixed-use buildingin Pittsburgh as collateral.
Sevenproperties withinthe Point Ruston mixed-use developmenton Tacoma’s waterfrontare upfor sale following alawsuit filedby lender TerraCotta Real Estate Services seeking repaymentof$73.8million indebt owed.Thetotal amount has since increasedto over$82millionandthepropertieshave been placed into receivership since May2023as per court orders.A judge recently ruledthattheycan be putupforsale,due todelayed paymentsfromthe borrower.
The Baltimore Business Journal reported that a high-profileoffice tower located at1 E.Pratt St.in downtown Baltimoreis headedtowardforeclosureauctionafter defaultingona CMBSloan worth$54.3 million.The lien holder, MCB Real Estate, acquired the mortgage for $25 million in 2022 and is now selling the property “as is” to recoup its investment.
The owner of Reston Eastpointe office buildingin Virginia has defaulted on a $38-million CMBS loan that matured in December last year.A joint venture between Lincoln Property Company,Ritz Banc Group,andMasic had acquiredthe propertyfor$58millionin2016 using a $38-million acquisition loan from JPMorgan Chase.However,the CMBSloan went into special servicing ahead of its maturity deadlineand remains unresolved.
A jewelry center located at1 N.E.First St.in downtown Miami was sold for$27.5million just days before it was set to be auctioned off due to foreclosure proceedings.City National Bankof Florida had wona judgment against TC Metro Mall Investments over an outstanding loan worth$26million.However,the bank filed amotionto canceltheforeclosure sale as they were close to resolving the case.TC Metro Mall Investments then soldthepropertyto three buyers as tenants in common.
In summary,Brookfield emerged victorious in an auction held on Jan.18for distressed apartment buildingsin San Francisco while several iconic office properties indowntown Denverare facing financial strugglesdue topandemic-relatedvacancies.MackReal Estateis foreclosingon two construction loans secured by sites intended formultifamily developmentwhile Brookfield also failedtopayoffasecuritizedloanbackedpartiallybyanofficepropertyinBrooklyn Heights.Sevenproperties within Tacoma’s Point Ruston mixed-use development are upforsalefollowing alawsuitfiledbylenderTerraCottaRealEstateServices seekingrepaymentofdebtowed.Ahigh-profileoffice towerindowntown Baltimoreis headedtowardforeclosureauction after defaultingonaCMBSloanworthover$54 million.RestonEastpointeofficespaceinvirginiahas defaultedon a$38-millionCMBSloanandajewelrycenterinMiamiwas sold for $27.5 million just days before it was set to be auctioned offdue to foreclosure proceedings.
