Return to Lender: Week of Dec. 19, 2024

Highgate is handing over the 686-room Hyatt Regency San Francisco Downtown SoMa to its lender, the San Francisco Business Times reported. Per a deed-in-lieu of foreclosure filing on Dec. 11, Highgate transferred the deed to an affiliate of Blackstone Mortgage Trust for forgiveness of a little over $290 million in unpaid debt and associated costs. Earlier this year Highgate missed the balloon payment on the $250 million in debt.

The Hyatt Regency Lake Washington in Renton, WA has been sold for just over $103 million, reported the Puget Sound Business Journal. Austin-based Ohana Real Estate Investors is the new owner of the 347-key hotel, which will continue to be operated as a Hyatt Regency. The sale came after the U.S. Bankruptcy Court of Eastern Washington signed off on a Chapter 11 bankruptcy plan by affiliates of Seco, the developer of Southport, the 2.4-million-square-foot, lakefront mixed-use development.

Madison Equities’ office-turned-apartment building in downtown St. Paul has been taken over by the lender, reported the Minneapolis/St. Paul Business Journal. The Degree luxury apartment building, formerly the Degree of Honor office building, has traded hands for $9.575 million, according to a public real estate filing with the Minnesota Department of Revenue. The acquirer via a deed in lieu is Minnetonka, MN-based Minnwest Bank, which earlier sought to foreclose on the property via an auction.

The Washington Business Journal reported that a Washington, DC investor plans to convert a downtown office building that was sold in a November foreclosure sale into a 122-room hotel. Calco Hospitality intends to transform the 62,000-square-foot office at 601 Indiana Ave. NW into a 10-story hotel with a penthouse and a small “indoor outdoor” restaurant and bar area. The property, once known as the Bob Hope Building, was caught up in a dispute over the General Services Administration’s planned consolidation of three related agencies, which left it without an anchor tenant. After bouncing off and on the foreclosure auction block, 601 Indiana was sold in a November substitute trustee’s sale for $8.5 million to Houston’s 601 Indiana LLC.

Gateway Center in Pittsburgh is among the office properties ruled to be liquidated by a court in the British Virgin Islands to pay off nearly three-fourths of $200 million in unpaid bond debt of its owner Hertz Properties Group, according to the Pittsburgh Business Times. A trustee will oversee the sale of the assets of Hertz Properties, according to the report, a move that comes after Amir Giryes, principal of the Dallas-based Giryes Capital group was appointed chief restructuring officer in September to oversee the company’s finances and manage its assets after it reported to bondholders on the Tel Aviv exchange that “it has significant doubts regarding the continued existence of the company.”