The wave of defaults on loans backed by office properties appears to be building—in the value of the portfolios going belly up as well as the number and size of CMBS loans becoming distressed, with a portfolio worth more than $2B joining the growing list of defaults this week.
Columbia Property Trust has defaulted on $1.7B in floating-rate loans backed by a seven-building portfolio involving properties in New York, San Francisco, Boston and Jersey City. The total value of the portfolio, based on a 2021 appraisal, is estimated at 2.27B.
Columbia, an office REIT acquired by Pacific Investment Management for $3.9B in 2021, said in a statement it is in discussions to restructure the loans with lenders including Goldman Sachs, Citigroup and Deutsche Bank, Bloomberg reported.
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