Return to Lender: Week of August 22, 2024

201 N. Charles St., an office property in downtown Baltimore, sold on August 15 for $3.1 million via an online auction on TenX to an unidentified buyer, according to the Baltimore Business Journal. State records show the seller was RSS Comm2013-LC13-MDH2L LLC, the lender for the building’s loan that acquired the property at a foreclosure auction in 2022 for $4.1 million.

The Mall De Las Aguilas loan ($21.7 million | MSC 2015-UBS8) was liquidated as of the August 2024 remittance with the trust realizing $12.2 million in losses, Morningstar Credit reported. The loan backed by an Eagle Pass, TX shopping center was originally moved to special servicing in June 2020, eventually becoming REO in July 2021. The loss wrote down class H and eroded class G by $6.4 million.

A four-story, mixed-use South End building, once the home of real estate firm The Davis Cos., is set to be auctioned off, the Boston Business Journal reported. One Appleton, located at 439-441 Tremont St. in Boston, is scheduled for a foreclosure auction on Aug. 28, according to a notice from auctioneer Paul E. Saperstein Co. Since April, the building’s mortgage has been held by a limited liability company affiliated with Peter Zagorianakos of local real estate development and investment firm Triad Alpha Partners.

A loan backed by Atlanta Financial Center in Buckhead has hit the market and is expected to sell at a discount, the latest sign of trouble in the U.S. office property sector, reported the Atlanta Business Journal. Cushman & Wakefield is marketing the loan, with a balance of $122.5 million. It’s expected to sell at a significant discount. The nearly one-million-square-foot office property is owned by an affiliate of New York City-based Sumitomo Corp. of Americas.

Madison Realty Capital has filed to foreclose against $81.51 million of mortgage debt it holds on the 155-key Fifth Avenue Hotel in Manhattan, reported Trepp. MRC made its filing in New York Supreme Court. It claims that the debt it holds, which it had acquired from Santander Bank earlier this year, had defaulted at its maturity in March. The 116-year-old collateral property at 1 W. 28th St, is owned by Empire Management of New York, which in 2013 acquired what then was a 90,000-square-foot office building for $15 million and converted it into a hotel. It added a building as part of the redevelopment.

New York-based REIT BrightSpire Capital is putting on the market a downtown Oakland, CA office tower it acquired from Tidewater Capital last summer, the San Francisco Business Times reported. Tidewater returned its 10-story, 83,000-square-foot office tower at 1440 Broadway to its lender, BrightSpire, in July 2023 in lieu of a foreclosure process. BrightSpire originally tapped CBRE to lease up the 44% occupied property, but has now listed it for sale, again with CBRE handling the listing.