Return to Lender: Week of August 29, 2024

The Gabriel hotel at 1100 Biscayne Blvd. in downtown Miami was transferred to its lender through a deed in lieu of foreclosure valued at $62 million, reported the South Florida Business Journal. CGI 1100 Biscayne Management, which was previously controlled by Miami-based CGI Merchant Group but was transferred to Madison Realty Capital through a UCC foreclosure action over an allegedly defaulted loan, voluntarily relinquished ownership of The Gabriel to 1100 Biscayne Propco LLC, an affiliate of Madison Realty Capital Debt MA I Holdings B LLC.

The Pittsburgh Business Times reported that the main lender on 11 Stanwix, downtown Pittsburgh’s 23rd-largest office building at 426,000 square feet and one of its most active at leasing new tenants, sold the mortgage as part of a larger portfolio strategy in a deed in lieu of foreclosure process. Canadian Imperial Bank of Commerce, which signaled it planned to sell off $316 million in office loans at a discount in May, dealt the loan balance on 11 Stanwix to Irvine, CA-based Kairos Investment Management.

The federal government will foreclose on the owner of the Paul Brown Lofts in downtown St. Louis, according to the St. Louis Business Journal. The U.S. Department of Housing and Urban Development will hold a foreclosure sale Oct. 28 for the 16-story apartment and retail building at 206 N. Ninth St. HUD helped finance a redevelopment of the property, which was completed in 2005, into 222 apartments with ground-floor retail. The $46-million project included a $28.9-million HUD-insured loan.

A loan secured by 15 commercial properties across Greater Washington was recently transferred into special servicing for maturity default. The borrower, Douglas Development Corp., owes the full $51.7-million balance on a single loan tied to all 15 properties, the Washington Business Journal reported. The loan, originated in July 2014 by The Royal Bank of Scotland and sold to a CMBS trust that same year, landed in special servicing July 18, ahead of its August 1 maturity date. The loan on one of the properties in the portfolio, which includes four in Old Town Alexandria and a dozen in the District of Columbia, was defeased.

Morningstar Credit reported the August transfer of the Cincinnati Multifamily Portfolio ($39.0M million | 6.0% of BMO 2023-C5) to the special servicer. The portfolio is backed by two garden-style multifamily properties in Cincinnati with a total of 375 units. Occupancy was 98% as of March 2024. Both the reason for the transfer and the workout strategy were flagged as “Other.”

Memphis Forum ($31.2 million | 6.2% of JPMBB 2014-C23) has been shipped to the special servicer in August 2024 for maturity default, according to Morningstar Credit. The 342,420-square foot office generated a DSCR of 1.02x in 2023 as the 2023 net cash flow was 25% below the underwritten level. Occupancy was 72% as of March, down from 91% at issuance.