by Kipp Gillian | Oct 10, 2024 | Distressed Assets
The Trepp CMBS Special Servicing Rate rose 33 basis points to 8.79% in September. This was the ninth consecutive monthly increase and the second-largest uptick of 2024, the firm reported. Distress was consistent throughout, with the respective special servicing rates...
by Kipp Gillian | Oct 10, 2024 | Distressed Assets
The $8.5-million purchase of the former Sports Illustrated building at 135 West 50th St. in Midtown Manhattan has been completed, Trepp reported. A leasehold interest in the 23-story building, with 925,000 square feet of office space, was offered at an online auction...
by Kipp Gillian | Oct 3, 2024 | Distressed Assets
Driven by the retail sector, the Trepp CMBS Delinquency Rate continued its uphill climb in September 2024, rising 26 basis points to 5.70%. Although most of the major property types contributed to the rise in the overall rate, retail contributed to about 50% of the...
by Kipp Gillian | Oct 3, 2024 | Distressed Assets
The Dilweg Cos. turned ThExchange office park in Charlotte over to Ares Management, the Charlotte Business Journal reported. The property’s $68.6-million loan matured in May and became nonperforming that same month. Ares initiated foreclosure proceedings on the...
by Kipp Gillian | Sep 26, 2024 | Distressed Assets
With pricing down 19% from its 2022 peak, the U.S. commercial real estate sales market is starting to come back to life, Bloomberg News reported. One reason is that lenders and owners want to cut their losses and make new investments now that the Federal Reserve’s...
by Kipp Gillian | Sep 26, 2024 | Distressed Assets
Harbor Group International has taken title to the 623-unit Lofts at Twenty25 apartment property in Atlanta, reported Trepp. The Norfolk, VA, investment manager two years ago had provided $104.7 million of financing against the property at 2025 Peachtree Road NE to...
by Kipp Gillian | Sep 26, 2024 | Distressed Assets
Lincoln Properties has unloaded the Echo Street West project, an office project that Lincoln was having a hard team paying for. The office development was valued at $154 million after delivery but was sold for much less than that. The Atlanta Business Journal reports...
by Kipp Gillian | Sep 19, 2024 | Distressed Assets
U.S. banks reported a 20% sequential increase in total high-volatility commercial real estate (HVCRE) loans in the second quarter of 2024 following a four-year low balance in Q1, according to S&P Global Market Intelligence. The aggregate HVCRE loan balance...
by Kipp Gillian | Sep 19, 2024 | Distressed Assets
FRI Investors is said to be paying a little less than $100 million, or $71.43 per square foot, for the 68% leased, 1.4-million-square-foot office building at 70 West Madison St. in Chicago, Trepp reported, citing Crain’s Chicago Business. The West Palm Beach,...
by Kipp Gillian | Sep 16, 2024 | Distressed Assets
Optimus Properties, LLC purchased 5214-5232 W. Sunset Blvd., a 19,904 square-foot retail strip center in Hollywood, situated on a 42,076-square-foot lot, via a court-ordered sale. The center is shadow-anchored by a box retail space that was formerly 99 Cents...
by Kipp Gillian | May 30, 2024 | Distressed Assets
The volume of maturing CMBS loans is “quite significant,” Trepp says in a new report. Given this volume as well as recent history, the firm expects to see an increase in loan modifications. About $131.3 billion in outstanding, non-defeased CMBS loans that are...
by Kipp Gillian | May 30, 2024 | Distressed Assets
The $87.5-million loan against the 182,738-square-foot office property at 292 Madison Ave. in Midtown Manhattan is being offered for sale through Newmark, Trepp reported. With an original balance of $92.5 million, the loan was provided by Deutsche Bank, allowing owner...
by Kipp Gillian | May 29, 2024 | Distressed Assets
The Chicago Chapter of The Society of Industrial and Office Realtors (SIOR) hosted its Speaker Series Luncheon at The Glen Club in Glenview, Illinois. Ryan Moen, SIOR, Vice President of SIOR Chicago Chapter and Principal and Co-Founder of Versa Real Estate Services,...
by Kipp Gillian | May 29, 2024 | Distressed Assets
Dollar Tree is reportedly the winning bidder for at least 93 shuttered 99 Cents Only stores spread across California, the Orange County Register reported, citing information from brokerage Retail Specialists. Most of the stores are in Southern California. In total,...
by Kipp Gillian | May 23, 2024 | Distressed Assets
Although the much-anticipated wave of office distress has yet to materialize, new research fromYardi Matrix shows that many markets are exposed to potential distress. The firm said debt service coverage ratios have declined for office properties in recent years, due...
by Kipp Gillian | May 23, 2024 | Distressed Assets
The lenders behind a non-performing loan backing the Four Seasons San Francisco at Embarcadero are seeking a buyer for $72.5 million in debt with a potential path to owning the 155-key downtown luxury hotel at a steep discount, the San Francisco Business Times...
by Kipp Gillian | May 20, 2024 | Distressed Assets
Red Lobster Management LLC said late Sunday evening that it had filed for Chapter 11 protection in the United States Bankruptcy Court for the Middle District of Florida. The move was widely expected; CNBC reported in April that the seafood...
by Kipp Gillian | May 16, 2024 | Distressed Assets
Two real estate investment firms have teamed up to buy The 410, a 24-story office building located in the heart of Downtown Denver. Cress Capital, in collaboration with Denver-based E2M Ventures, acquired the loan on the property earlier this year and subsequently...
by Kipp Gillian | May 16, 2024 | Distressed Assets
The Trepp CMBS Special Servicing Rate rose 80 basis points in April to reach 8.11%. This marks the largest monthly jump that the rate has experienced in nearly four years, with higher monthly upticks only reached during the COVID-19 pandemic in mid-2020. In addition,...
by Kipp Gillian | May 16, 2024 | Distressed Assets
A prominent office building in Houston’s Galleria area that was designed by architect I.M. Pei is being put up for sale as a result of a Chapter 11 bankruptcy filing, reported the Houston Business Journal. Hilco Real Estate Sales has set a deadline of June 14 for bids...
by Kipp Gillian | Apr 11, 2024 | Distressed Assets
Detroit, Chicago and Denver have the highest risk scores among the top 25 metro areas for maturing multifamily loans, Kroll Bond Rating Agency (KBRA) said in a new report. KBRA weighed apartment supply and demand metrics from several sources to derive a risk scale...
by Kipp Gillian | Apr 11, 2024 | Distressed Assets
The team of Ramsfield Hospitality Finance and AB CarVal Investors has taken over the 248-room Kimpton Alton Hotel in San Francisco’s Fisherman’s Wharf area through a deed-in-lieu of foreclosure, reported Trepp. The team had provided $85 million of...
by Kipp Gillian | Apr 10, 2024 | Distressed Assets
Unisen Senior Living is having trouble finding tenants. Its 491-unit senior living facility has only a 21% occupancy rate. Operated by nonprofit Tampa Life Plan Village, the company owes $43 million to unsecured creditors and nearly $87 million to secured creditors....
by Kipp Gillian | Apr 5, 2024 | Distressed Assets
Commerce, CA-based 99 Cents Only Stores LLC said Thursday afternoon it would close all 371 of its stores. The company entered into an agreement with Hilco Global to liquidate all merchandise and dispose of certain fixtures, furnishings and store equipment. Sales under...
by Kipp Gillian | Apr 4, 2024 | Distressed Assets
The Trepp CMBS Delinquency rate dropped slightly in March 2024 for an overall delinquency rate of 4.67%, a decline of four basis points from February. The decline was almost exclusively due to continuedimprovements in the retail sector, which saw its delinquency rate...
by Kipp Gillian | Apr 4, 2024 | Distressed Assets
PCCP acquired the $111-million nonperforming senior loan on the office and retail building at 462 Broadway in Lower Manhattan from Areal Capital, according to published reports. The note was scheduled to mature this month and went on the market in January after the...
by Kipp Gillian | Apr 1, 2024 | Distressed Assets
A Florida-based investor has purchased the distressed Schaumburg Towers office complex after an auction for the property failed to attract offers. A venture led by Sigma Plastics Group founder Alfred Teo acquired the two 20-story office towers at 1400 and 1450...
by Kipp Gillian | Mar 28, 2024 | Distressed Assets
South Korean investment manager Consus Asset Management has agreed to pay $145 million, or $145 per square foot, for the one-million-square-foot office tower at 777 S. Figueroa St. in Downtown Los Angeles, reported Bloomberg News. The company is buying...
by Kipp Gillian | Mar 28, 2024 | Distressed Assets
Commercial property foreclosures in 2024 totaled 705 through February, Trepp reported, citing data from ATTOM. That’s an increase of nearly 8% from the 655 foreclosures in the year-ago period. ATTOM recorded 4,968 foreclosures in 2023, up 46% from 2022, when...
by Kipp Gillian | Mar 28, 2024 | Distressed Assets
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...
by Kipp Gillian | Jan 23, 2024 | Distressed Assets
Summit at Salado Creek and The Canopy Apartments are being auctioned off, victims of the tenuous borrowing climate. The San Antonio Business Journal reports the two are slated for a distressed sale next month after their owners defaulted on tens of millions of debt....
by Kipp Gillian | Jan 22, 2024 | Distressed Assets
Ares Commercial Real Estate has requested foreclosure over a $127 million loan on a property at Live Oak and Texas Streets in Dallas. The property includes the Gabriella apartments and a ground-floor Tom Thumb grocery store. The loan was originated by an affiliate for...
by Kipp Gillian | Jan 22, 2024 | Distressed Assets
RXR Realty and Ares Management are partnering on a $1-billion fund to acquire distressed Manhattan office properties, the Financial Times reported. The two companies have seeded the partnership with $500 million and hope to raise an additional $500 million. They’re...
by Kipp Gillian | Jan 18, 2024 | Distressed Assets
In the ever-evolving landscape of commercial real estate, the status of distressed assets serves as a barometer for the industry’s resilience and adaptability. Mitchell Hunter, chief commercial officer at Trimont, is at the forefront in identifying trends in...
by Kipp Gillian | Jan 18, 2024 | Distressed Assets
Delinquency rates for mortgages backed by commercial properties increased during the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) latest commercial real estate finance Loan Performance Survey. 96.8% of outstanding loan balances...
by Kipp Gillian | Jan 18, 2024 | Distressed Assets
The $308-million mortgage on 1740 Broadway, a Manhattan office tower owned by Blackstone Inc., is up for sale again after the private equity giant defaulted on the debt more than a year ago, reported Bloomberg News. Special servicer Midland Loan Services hired JLL to...
by Kipp Gillian | Jan 11, 2024 | Distressed Assets
The Trepp CMBS Special Servicing Rate dropped by six basis points in December 2023, falling to 6.78%. However, the long-term trend is still up: Trepp said the special servicing rate closed out 2023 with a total increase of 167 bps year over year. Most property types...
by Kipp Gillian | Jan 11, 2024 | Distressed Assets
Kroll Bond Rating Agency reported that the Columbus Square Portfolio, totaling $370.6 million in four 2014 vintage conduit transactions, transferred to the special servicer for imminent maturity default. The portfolio is backed by five condominium buildings that...
by Kipp Gillian | Jan 9, 2024 | Distressed Assets
Eagle Point Hotel Partners purchased Ascent on Main, a 51-key boutique hotel in Colorado, for $8.25 million. The property, which was under the control of a receiver, is located in the Denver suburb of Parker. Ascent on Main opened its doors in late 2019. The...
by Kipp Gillian | Jan 8, 2024 | Distressed Assets
A venture of Chicago-based investor Igor Gabal has acquired the 12-story West Loop office building at 300 West Adams Street for $4 million. The deal represents a staggering discount of nearly 90 percent from the building’s $38 million appraised value when it was...
by Kipp Gillian | Jan 2, 2024 | A Quick Word - Kipp Gillian, Employment
2024 Remote no more. The pandemic did damage in so many ways. It was an unprecedent time and a lot of decisions were made out of fear, haste and control. The need to create a remote work environment came as a necessity to let people retain their jobs and feel safe....
by Kipp Gillian | Dec 29, 2023 | A Quick Word - Kipp Gillian, Employment
2024 The year we hold our breath. The last couple of years we’ve felt like been tumbling down one stair case after another. Hoping, after reaching the bottom of each flight “this has to be the bottom” but it just keeps going and going. Sure, some...
by Kipp Gillian | Nov 8, 2023 | A Quick Word - Kipp Gillian
The foreshadowing, better yet the existence, of artificial intelligence predates even Nikola Tesla ‘s own prediction, “”I purpose to show that, however impossible it may now seem, an automaton may be contrived which will have its ‘own mind,’” Tesla...
by Kipp Gillian | Aug 15, 2023 | Distressed Assets
Wall Street firms are raising new funds to acquire office buildings, apartments and other troubled commercial real estate at a fraction of the price investors paid a few years ago, the Wall Street Journal reported. Cohen & Steers, Goldman Sachs, EQT Exeter and...
by Kipp Gillian | Aug 12, 2023 | Distressed Assets
From inflation and interest rates to return of office and economic conditions, today’s market is at a unique crossroads of challenges and opportunities. Hear from leading experts and experienced commercial real estate professionals on winning strategies and powerful...
by Kipp Gillian | Aug 4, 2023 | Distressed Assets
Office led the way as CMBS delinquencies increased in July, Trepp and Fitch Ratings said Friday. The Trepp CMBS delinquency rate rose 51 basis points to 4.41%, the highest level since December 2021, with increases in four of the five major property sectors. ...
by Kipp Gillian | Jul 31, 2023 | Distressed Assets
After a slight improvement in June, the delinquency rate among Kroll Bond Rating Agency (KBRA)-rated U.S. CMBS rose sharply in July to 3.93%, a 34-basis point increase. The total delinquent and specially serviced loan rate in the $314.8-billion KBRA-rated CMBS...
by Kipp Gillian | Jul 28, 2023 | Distressed Assets
Delinquency rates for bank-held commercial real estate (CRE) loans increased in the first quarter, with all major property types other than industrial showing greater distress, Trepp reported last week. Lender concern about risk, indicated by criticized loan rates,...
by Kipp Gillian | Jul 17, 2023 | Distressed Assets
The U.S. CMBS delinquency rate rose six basis points to 1.91% for a second consecutive month in June from 1.85% in May, Fitch Ratings reported. The majority of new delinquencies occurred in the retail and office sectors. Fitch said new 60-day-plus delinquencies in...
by Kipp Gillian | Jul 10, 2023 | Distressed Assets
The Trepp CMBS Special Servicing Rate climbed 31 basis points in June to 6.42%. This represents the fifth increase in a row and the third largest this year. Six months ago, the rate was 5.17%, while 12 months ago, it was 4.91%. Most notable was the increase in the...
