• Less than two years after changing hands, The Optimist Lofts in Atlanta’s Piedmont Heights has returned to its lender, according to the Atlanta Business Chronicle. LoanCore Capital, which extended a short-term mortgage to the owner in 2022, was the highest bidder at a foreclosure sale in early March, according to Fulton County property deeds. The firm bid $36.5 million for the 212-unit tower, which sits just off of I-85 on the eastern edge of Buckhead. An affiliate of Liquid Capital paid $57 million for the tower in 2022, financing the acquisition with a $48-million mortgage from LoanCore. Liquid’s loan was set to mature in May 2024, but failure to pay debt service payments pushed the lender to foreclose.  
  • The owner of Colonie Center, the second-largest shopping mall in the Albany, NY region, defaulted on the outstanding debt for much of the shopping center when it failed to repay the balance of a large loan by the maturity date, the Albany Business Review reported. KRE Colonie Owner LLC of Carlsbad, CA, was scheduled to pay the $102.9-million balance by Dec. 9. The collateral for the loan is about 754,000 square feet of the 1.3-million-square-foot shopping center. “Local counsel has been retained to file for foreclosure and/or receivership, if necessary,” according to financial filings. 
  • A $32-million loan on the Hilton Garden Inn Cupertino, representing 4.0% of WFCM 2014-LC18 | CMBX.8 | CMBX.11, has transferred to special servicing for imminent monetary default despite a most recent DSCR reported at an adequate 1.27x, according to Morningstar. Servicer commentary also alludes to the loan’s pending maturity at the end of this year. 
  • 99 Rhode Island St., a San Francisco office property that at one time was a favorite among tech startups, is headed for a foreclosure sale, the San Francisco Business Times reported. The property has been vacant for more than four years, and building owner EQT Exeter has not made its monthly loan payment since July 2023. 
  • A six-story downtown office building owned by the Kivelstadt Group, a San Francisco real estate investor also known as TKG, has passed into the hands of a receiver after defaulting on a nearly $20 million loan, reported the San Francisco Business Times. TKG appears to have handed back the keys after missing payments on a $19.6-million loan from Natixis that was used to acquire the 37,089-square-foot Class B office building for $28.3 million in 2014. A report prepared for bondholders this month notes the loan was previously transferred to a special servicer due to payment default and a receiver took contro in February. This month’s bondholder report also states “legal counsel has been engaged” on behalf of the lender or its special servicer, Midland Loan Services. 
  • The owner of the Berkman II property in Jacksonville, FL has filed for bankruptcy, halting a planned auction of the site. The downtown site where the half-built Berkman II tower sat for years before being imploded two years ago was slated to go to auction this past Monday after a court-ordered foreclosure, reported the Jacksonville Business Journal. However, PB Riverfront Revitalization of Jacksonville LLC, the company led by Park Beeler, who purchased the site three years ago, filed for bankruptcy, pausing the foreclosure proceedings and putting the auction on hold. Beeler will have three months to come up with a plan to handle the debt. A meeting of creditors is scheduled for April 24. 
  • The $104.5-million loan on 90 Fifth Ave. in Manhattan, part of GSMS 2017-GS7, GSMS 2017-GS8 and GSMS 2018-GS9, transferred to special servicing this month, Morningstar reported. The transfer was done without much commentary, but servicer commentary from late last year noted there was a delinquent real estate tax bill outstanding on the Midtown South office property. 
  • Washington Prime is nearing default on an $85-million loan for the 1.2-million-square-foot Westminster Mall in Westminster, CA due to rising interest rates and falling rental income, according to published reports. Trepp reported that the loan has been transferred to special servicing due to concerns of imminent monetary default, as reported by servicer Torchlight Loan Services. 

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