Return to Lender: Week of Sept. 19, 2024

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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, FL, company is buying the property from a venture of Hearn, GEM Realty Capital and Farallon Capital, which acquired it in 2014 for $375 million. Ownership was hit with a foreclosure suit in May, alleging that the group defaulted on $305 million of debt that was provided against the property in 2018 by Bank of America, PNC Bank, Aareal Bank and Raymond James.

Trepp reported that the 198-room Doubletree Jersey City hotel in Jersey City was acquired by Capital Insight for $61.5 million, or $310,606 per key, in a deal that involved its assumption of a long-troubled $60-million loan. The hotel had been overseen by a receiver, Trigild, since 2022. The property’s then owner, an affiliate of Hartz Mountain Industries, had said it would turn the hotel over in a deed-in-lieu of foreclosure. As part of Capital Insight’s acquisition, the mortgage has had its term extended by two years to October 2027.

A New York judge has ordered the mortgage lender for the Aloft hotel near the Galleria in Houston to pay nearly $51 million to repurchase the hotel’s long-delinquent loan as the property’s receiver works to stabilize its finances. The Houston Business Journal reported that Aloft Houston by the Galleria’s loan servicer now seeks additional financial information from its owners to determine a course of action, given that the hotel’s ownership still had a $30.8 million loan balance as of February. The hotel at 5415 Westheimer Rd. has been in receivership for the past four years, and loan servicer notes say the hotel’s owners, The Levine Organization out of Melville, NY, have failed to keep up with debt service payments since October 2021.

An affiliate of Ardent Cos. has filed a foreclosure suit against the venture that owns two office buildings totaling 326,822 square feet in downtown Miami, reported Trepp. The venture, between Stonerock Capital Partners and Triple Double Real Estate, bought the buildings at 200 SE First St. and 44 West Flagler St. in May 2022 for $56.7 million, financing them with a $58.3-million loan from Ardent that matured in June. But the loan, now with a balance of $49.4 million, defaulted at the start of the year, according to the suit. The lender has requested that a receiver be appointed to manage both buildings.

A receiver has taken over management of the office tower at 312 Elm St. in downtown Cincinnati, marking the third office building in the CBD to pass into receivership, reported the Cincinnati Business Courier. Paul Plattner, managing director of Colliers Real Estate Management Services, assumed the court-appointed role last month. Delaware-based Wilmington Trust, an affiliate of M&T Bank Corp., currently holds…