Thursday, February 9, 2023

Related's LIC deed-in-lieu toodle-ooo

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The Real Deal 

Developer and partner BentallGreenOak negotiating deed-in-lieu of foreclosure

The mantra that millennials wanted to “work where they live” drew some of New York’s biggest developers across the East River in the late 2010s to build Instagrammable offices in hot Queens and Brooklyn neighborhoods.

Today many of those offices remain empty, and now some developers are conceding that the gold rush never materialized. 

Case in point: Related Companies’ fund management arm and its partner BentallGreenOak are ready to walk away from the Point LIC, a small campus of converted warehouses in Long Island City that sit mostly vacant after six years. 

The developers have defaulted on their mortgage for the pair of seven-story buildings in the neighborhood’s Hunter’s Point section, sources told The Real Deal. Their lender, mortgage REIT BrightSpire Capital, is looking to sell the non-performing loans, and sources said the borrowers have agreed to hand the keys to the Point over to whoever buys the debt through a deed-in-lieu of foreclosure.

Representatives for Related Fund Management and BentallGreenOak did not respond to requests for comment. A spokesperson for BrightSpire — known until 2021 as Colony Credit Real Estate — declined to comment.

The mortgages on the two buildings total around $150 million, and BrightSpire will look to recoup as much of that as possible.

It’s the latest sign of distress in the office market, as high interest rates and a continued transition to hybrid work expose struggling investments.

Related and BenatallGreenOak paid nearly $104 million in 2016 to buy the two properties: a 130,000-square-foot former oil storage warehouse at 2100 49th Avenue, dubbed the Paragon Building, and a 220,000-square-foot building across the Long Island Expressway at 2109 Borden Avenue called the Blanchard Building.

The new owners spent $45 million overhauling the properties, building new entrances and lobbies, upgrading building systems and installing amenities like cafes and outdoor spaces that were all the rage for offices designed to attract a millennial workforce.

17 comments:

Anonymous said...

The Developers losing their money should be extremely grateful because Biden said it’s a great economy and unemployment is at an all time low as well as intrest rates.

Anonymous said...

Build Baby Build...

Anonymous said...

The Great Free State of Florida dose not have problems like this. Wonder why ?

Kitara said...

I hate to see a great American corporation like Related Management lose money. I blame the communists!

Anonymous said...

Swagger will fill them with the invaders

Anonymous said...

I thought the plan was to make this a prominent Tech center?

Anonymous said...

Louis said...
Speaking of Real Estate.
NYC mayor Swagger fights tickets for rats on his property ! LOL...
https://www.youtube.com/watch?v=9pmlJ7WGjtQ&ab_channel=LouisRossmann
https://www.youtube.com/watch?v=9pmlJ7WGjtQ&ab_channel=LouisRossmann

NPC_translator said...

Well to be fair, nobody could have predicted the Covid fiasco and the work-from-home movement. Though once it started, it was pretty easy to see how Millennials, the most brain-washed generation in American history, were the most fervent followers of every stupid Covid "intervention" that did nothing whatsoever. Even to this day, I mostly see Millennial dopes wearing masks, even outside.

Anonymous said...

Here in the great state of Florida, we move our trailer to a new location. Problem solved.

Anonymous said...

@NPC_Doofus
Millennials are the most brainwashed?
Which generation gave us Vietnam, Iraq x 2, Afghanistan, and fell for the whole whopper, “They attacked us because of our freedoms “?
Which generation let Ronnie Reagan set in motion the destruction of Americas middle class? Which generation let corporations and plutocrats take over the country?
Take a hike Boomers. …

Kitara said...

@"The Great Free State of Florida dose not have problems like this. Wonder why ?"

To continue with my response to @“ Why dislike or disagree with Florida ?” from a previous thread

6. The Elian Gonzales fiasco
7. The Hanging Chads fiasco
8. The George Zimmerman fiasco
9. With some more from the NY POST
10. And from Buzzfeed

You can't make this stuff up....

Anonymous said...

@"I thought the plan was to make this a prominent Tech center? "

Corporate monopolies have decided to relocate all tech work to India.

Anonymous said...

We need more housing based on EQUITY and DIVERSITY.

Anonymous said...

Ask the NYS Dem Clown gov., she knows how the game is played.

Anonymous said...

SAY GOODBYE TO NYC

Anonymous said...

Only blues cities. Failed democrat policies.

Anonymous said...

​Another day on the global tax farm