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Return to Lender: Week of Nov. 16, 2023



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 + Distressed Assets

  • New York Life Insurance, which loaned $31.77 million on the eight-story One Hanover Park office building in Addison, TX in 2018, foreclosed on the building after it declared the owners in default of the mortgage, the Dallas Morning News reported. In the deed transfer, New York Life listed the value of the building at $21.8 million. Built in 1998, the 195,894-square-foot property had been owned by a Houston-based investor since 2014. 
  • An affiliate of Los Angeles-based BrightSpire Capital Inc. paid $21.2 million for The Longfellow Building at 1201 Connecticut Ave. NW in Washington, DC after forcing an auction on the 12-story building, reported the Washington Business Journal. The price works out to roughly $109 per square foot for the 193,400-square-foot building. The building’s last owner, Chicago-based coworking company Expansive, defaulted on $65.4 million in financing from BrightSpire. 
  • Two financially troubled apartment developments will be auctioned off together in a foreclosure sale Friday in Pierce County, WA. The projects — the 115-unit Tacoma Trax at 415 E. 25th St. in Tacoma, and the 157-unit Madison Plaza at 102 Madison Ave. in Kent — were put into receivership by their lender, Los Angeles-based Parkview Financial, in March. Approximately $36 million was owed at the time the sale was scheduled, according to the Puget Sound Business Journal
  • Santa Monica, CA-based Hertz Investment Group, the owner of the 21-story 10 S. Broadway office tower in downtown St. Louis, agreed to a takeover of the property by investors, via a receiver, following an alleged loan default. The St. Louis Business Journal reported that Hertz agreed to the takeover after investors last month filed a lawsuit alleging that Hertz failed to pay some $16.5 million that was due as of Sept. 21 on a $20-million loan from JPMorgan Chase that matured August 1. 
  • Two high-profile Manhattan office towers have gone into special servicing. In the first instance, a mortgage loan on the Trump Organization’s 40 Wall St. has been transferred to special servicer Rialto Capital, Bloomberg News reported. The property had been on watchlist status since February, and the mortgage currently has an outstanding balance of $122.6 million. 
  • Uptown from 40 Wall St., a first lien mortgage on the Helmsley Building at 230 Park Ave. in Midtown has been transferred to special servicing due to imminent maturity default. Kroll Bond Rating Agency said it’s monitoring MSC 2021-230P, a $670-million CMBS single-asset single-borrower transaction. The senior and junior mezzanine loans were originated by Morgan Stanley Mortgage Capital Holdings LLC and had balances of $50 million and $75 million, respectively, for a total debt stack of $795.0 million. The loan’s sponsors are affiliates of RXR Realty LLC and Blackstone Property Partners. 
  • Kroll Bond Rating Agency identified $1.85 billion in loans with exposure to proposed lease rejections by WeWork in connection with its bankruptcy filing. KBRA Credit Profile identified 12 properties collateralizing 12 loans in 29 deals with exposure to a proposed lease rejection. In addition, there are two properties collateralizing two loans contributed to five commercial real estate collateralized loan obligation securitizations with exposure to a proposed lease rejection  

Inside The Story

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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