In another sign of the continuing toll from increased hybrid work, four Brooklyn office properties backing a $180 million securitization from 2018 have seen their value plunge 68 percent in the last five years, according to a Trepp alert issued Wednesday.
November servicer data shows the value of collateral behind the Dumbo Heights Portfolio commercial mortgage-backed securities (CMBS) at $207.1 million compared with $640 million when Citi Real Estate Funding originated the debt in August 2018, according to Trepp.
Owners RFR and Kushner Companies failed to pay off the Dumbo Heights Portfolio loan’s maturity by its Sept. 6, 2023, maturity date and is now in the process of transferring to its special servicer, LNR, according to data from CRED iQ.
At the time of the CMBS loan, WeWork (WE) was the portfolio’s second-largest tenant with a lease totaling 21.2 percent of the four buildings’ overall net rentable area (NRA). The struggling coworking company filed for Chapter 11 bankruptcy protection last week.
Officials at Kushner Companies did not immediately return a request for comment. RFR declined to comment.
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
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