Return to Lender: Week of August 1, 2024

One of the two original developers behind the Tri-County Mall project has formed a new ownership group and completed the repurchase of the Springdale, OH property, reigniting hopes for its $1-billion transformation into a mixed-use development, the Cincinnati Business Courier reported. Houston-based MarketSpace Capital re-acquired the 76-acre property through AV Cincinnati Acquisition LLC. MarketSpace and Dallas-based Park Harbor Capital originally bought the mall in March 2022 with a loan from Utah-based Reef Private Credit. The Texas developers defaulted on the loan late last year, prompting Reef to launch a foreclosure suit. The parties reached a settlement in May, in which they had until June 2 to come up with $28 million to repurchase the property. The developers paid $400,000 to extend the repurchase window through the first week of July.

The venture between Affinius Capital and Patrinely Group that owns the 263,171-square-foot Columbus Center office property in Coral Gables, FL, is in talks to turn it over to its lender in a deed-in-lieu of foreclosure, reported Trepp. The property is encumbered by what now is a $67.39-million loan that Varde Partners had provided at the end of 2020. The Affinius/Patrinely venture had planned to renovate the 14-story property, at 1 Alhambra Plaza, about six miles west of downtown Miami, to increase occupancy to a projected 83%, as certain tenants were expected to vacate. However, occupancy has struggled. As of March, the property was 62% leased, down from 68.8% in early 2021.

Trepp reported that a group led by local developers Thomas Roszak and Mike Moceri is handing over a 210,318-square-foot office property at 145 S. Wells St. in Chicago to its lender through a deed-in-lieu of foreclosure. The property is encumbered by a $56.8-million loan that an affiliate of Fortress Investment Group provided in November 2021. The loan faces its initial maturity in December. Roszak and Moceri developed 145 S. Wells in 2019. Last year, it was 50% occupied and operated at a cash flow deficit, according to servicer data compiled by Trepp. It was expected to reach a 90% occupancy rate and generate $5.64 million of cash flow.

Hennepin County officials have issued a formal legal notice to sell Wells Fargo Plaza, a 24-story office tower in Bloomington, MN just off Interstate 494, during a September foreclosure auction open to the public, the Minneapolis/St. Paul Business Journal reported. The owners of the 450,000-square-foot building at 7900 Xerxes Ave. defaulted on a $44.8-million mortgage on the property, according to a notice filed July 3 by the lawyer for the lender. A foreclosure auction is scheduled for Sept. 12 at 10 a.m. at the Hennepin County Sheriff’s Office in downtown Minneapolis.

Three North Texas multifamily properties owned by California-based Tides Equities LLC are facing potential foreclosure as the real estate investment firm deals with fallout from an…