Return to Lender: Week of Jan. 30, 2025

San Francisco-based Frontline Realty Capital acquired one of the first Oakland office properties seized by its lender post-pandemic for a fraction of its 2018 purchase price, according to the San Francisco Business Times. Frontline scooped up 1440 Broadway, a 10-story, 83,000-square-foot office building for around $5.2 million, or roughly $58 per square foot. Lender BrightSpire Capital seized the property in July 2023 from Tidewater Capital, which paid $43.5 million to acquire it in 2018 with joint venture partner AXA.

Tides Equities has lost another apartment property in North Texas, Trepp reported. The 424-unit Tides on Haverwood at 19002 Dallas Pkwy. in Dallas was taken by its lender, Benefit Street Partners. It served as collateral for a $63.35-million loan that had matured in 2023 but was extended twice through this month.

Two years into a foreclosure process that has offered few clues about the future of Centre Square, the troubled office property’s receiver told the Philadelphia Business Journal it is “very likely” to be sold. Centre Square owners Nightingale Properties and InterVest Capital Partners, formerly Wafra Capital Partners, owe more than $375 million on the overdue CMBS loan backing the 1.76-million-square-foot office complex. Wells Fargo Bank filed a foreclosure complaint on behalf of investors in the CMBS trust that owns the debt in January 2023, and the Center City property was placed in receivership. CBRE, Centre Square’s court-appointed receiver, filed a motion in U.S. District Court for the Eastern District of Pennsylvania this month indicating it is preparing for a sale of the 1500 Market St. property.

The Great Northern Building in downtown St. Paul, MN is back on the market, just months after it was sold at auction. The Minneapolis/St. Paul Business Journal reported that the 13-story office building, located at 180 Fifth St. E., sold for $7.5 million at a foreclosure auction in October at the Ramsey County Sheriff’s Office, the office confirmed. An entity with apparent ties to the building’s lender, First International Bank & Trust, was the purchaser. Cushman & Wakefield confirmed it is now marketing the property for sale.

Kroll Bond Rating Agency reported that updated December 2024 special servicer commentary said the borrower of the $1.5-billion Parkmerced loan, Maximus Real Estate Partners, failed to close on a modification that it had negotiated in September. The trust is proceeding with enforcement actions including receivership, foreclosure and action against the guarantor. Despite this, industry sources report the sponsor remains committed to the collateral, one of San Francisco’s largest apartment complexes, and intends to close on a maturity extension in the coming weeks.