FAIRFAX, VA–A a nine-asset office portfolio in Fair Lakes totaling 1.25 million square feet, whose loan had been in special servicing for about a year, has been foreclosed. *
Shorenstein Co. was the sponsor of the pari-passu loan, which was split into a $142.45-million tranche and $116.55-million tranche.
Shorenstein requested the transfer to special servicing a year ago. Its plan was to work with the lender to reach a solution, a company spokesperson told GlobeSt.com at the time.
However its loan modification proposal was denied, according to Fitch Ratings, and Shorenstein agreed to proceed with a deed-in-lieu of foreclosure.
The portfolio's foreclosure caused more than a blip in the CMBS market. The default of the $116 million note was among the top five biggest CMBS defaults for the first half of the year, Fitch Ratings noted — in fact, it was no. 2 on Fitch's list, topped only by the $150 million default on the James Center, in Richmond, VA.
It also reported that the $259 million Fair Lakes Office Park loan caused an eight basis-point increase in the office delinquency rate for April 2016.
A source tells GlobeSt.com that the portfolio has been appraised for $197 million.
The properties are part of a 637-acre master-planned community developed by The Peterson Cos.
The properties are Hyatt Plaza, Fair Lakes II, Fair Lakes III, Fair Lakes IV, Fair Lakes V, Fair Lakes VII, Fair Lakes Court North, Fair Lakes Court South and 12500 Fair Lakes Cir.
* An earlier version of this article stated JER Partners bought the portfolio out of foreclosure. It did not, nor did it conduct the foreclosure sale. We apologize for the error.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
FAIRFAX, VA–A a nine-asset office portfolio in Fair Lakes totaling 1.25 million square feet, whose loan had been in special servicing for about a year, has been foreclosed. *
Shorenstein Co. was the sponsor of the pari-passu loan, which was split into a $142.45-million tranche and $116.55-million tranche.
Shorenstein requested the transfer to special servicing a year ago. Its plan was to work with the lender to reach a solution, a company spokesperson told GlobeSt.com at the time.
However its loan modification proposal was denied, according to Fitch Ratings, and Shorenstein agreed to proceed with a deed-in-lieu of foreclosure.
The portfolio's foreclosure caused more than a blip in the CMBS market. The default of the $116 million note was among the top five biggest CMBS defaults for the first half of the year, Fitch Ratings noted — in fact, it was no. 2 on Fitch's list, topped only by the $150 million default on the James Center, in Richmond, VA.
It also reported that the $259 million Fair Lakes Office Park loan caused an eight basis-point increase in the office delinquency rate for April 2016.
A source tells GlobeSt.com that the portfolio has been appraised for $197 million.
The properties are part of a 637-acre master-planned community developed by The Peterson Cos.
The properties are Hyatt Plaza, Fair Lakes II, Fair Lakes III, Fair Lakes IV, Fair Lakes V, Fair Lakes VII, Fair Lakes Court North, Fair Lakes Court South and 12500 Fair Lakes Cir.
* An earlier version of this article stated JER Partners bought the portfolio out of foreclosure. It did not, nor did it conduct the foreclosure sale. We apologize for the error.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
