Return to Lender: Week of July 11, 2024

Metropolitan Life Insurance Co. has taken the 166,000-square-foot office property at 240 W. 35th St. in Midtown Manhattan by foreclosing against a mortgage it had provided in 2018, Trepp reported. It made a $30-million credit bid at a May 29 foreclosure auction. The property, built in 1924 and renovated in 2009, was owned by Atco Properties & Management, which purchased it in 2016 for $108 million. MetLife had acquired a $70-million loan that Union Labor Life Insurance Co. had provided that year and two years later refinanced it with a $72.75 million loan. The loan matured in February 2023 and the property subsequently was placed with a court-appointed receiver.

Grants Pass Shopping Center ($24.9 million | 78.1% of COMM 2007-C9 | CMBX.4) has been sold, Morningstar reported. The stated sales price of $24.7 million is right in line with both the loan balance and the most recent appraised value of $24.3 million. The retail property was in special servicing for more than seven years and REO for the past four. CBRE’s Dino A. Christophilis and Daniel Tibeau represented the seller, LNR Partners.

A $66.4-million loan backed by the Town East Mall in Mesquite, TX and comprising 41% of BBUBS 2012-TFT was transferred to the special servicer this month for maturity default, according to Morningstar. The loan was initially set to mature in June 2020 but was modified twice, with the second modification pushing final maturity to June 2024. The other loan in the deal, Tucson Mall, shared the same final maturity date but transferred to special servicing two months earlier.

A $38.9-million paydown was needed to achieve the required debt yield to exercise the second one-year extension option on the $430-million Destiny USA loans (JPMCC 2014-DSTY), but the borrower, Pyramid, stated that it was not in a position to make this payment last month, reported Morningstar. The specially serviced loan has already been modified twice for maturity default. The Syracuse mall, the largest in New York, is divided into Phase I and Phase II. The appraised value of the mall has fallen significantly since issuance, from $710 million in 2014 to $133 million in 2023.

Rialto Capital is offering for sale the JW Marriott Chicago, a 610-key hotel in Chicago, reported Trepp, citing Crain’s Chicago Business. JLL is marketing the property, which is being offered without an asking price. It was appraised in March at a value of $228.1 million. Rialto took the property, at 151 West Adams St., in 2022 by foreclosing on a $79.3-million loan.

The owner of Philadelphia Mills is in talks to surrender the Northeast Philadelphia mall to its debtholders, according to the Philadelphia Business Journal. Simon Property Group Inc. is looking to hand ownership of Philadelphia Mills over to the CMBS trusts that hold the four notes comprising its $290-million loan on the property. The loan matured in June.