One of the biggest and tallest buildings of Pittsburgh, the US Steel Tower, may face foreclosure soon. It is a 64-story building situated on 600 Grant Street and covers an area of 2.3 million square feet leasable area. Ninety four percent of the building is occupied by tenants.
PNC Financial Group Services Inc., University of Pittsburgh Medical Centre and several others occupy it. September last year, Fitch Ratings released a report stating that US Steel Tower is facing debt issues. Five months later, its owners, AREA Property Partners, based out of New York, would be facing foreclosure auction on 1st February 2011.
The owners tried to refinance, but it did not work out in their favor. Five Mile Capital Partners, a small mortgage lender based out of Connecticut, holds $25 million of outstanding loan on the property, which the owners are unable to pay, said a trade publication, Real Estate Alert.
The property initially was bought for $293 million in 1984 and later sold for $265 million in 1999. GE Capital Corp held the mortgage at that time. Currently, an Allegheny County website has put a price of $175 million on the tower for upcoming foreclosure auction.
A separate report stated that another commercial center in Florida is likely to face seizure. A Sunrise shopping center in South Florida located at 3469 North University Drive is expected to be put up for auction by a commercial mortgage backed securities company after BJ’s Wholesale Club, that holds major area in the property, was shutting down its business.
BJ’s Wholesale Club declared that it would lay off 99 employees and shut the store by 17th January 2011. This Sunrise shopping center in South Florida that is facing foreclosure sits on 137,326 square feet area on the 13.1 acres allotted land.
Among the 137,326 square feet area, BJ’s Wholesale Club area covers up to 103,480 square feet, that is more than half of the total property area. Other than the club, occupants like Chuck E Cheese’s covers up 9000 square feet. This property was bought by the Oakland University Associates in 1998 for $10.2 million. Today, the owners have a $7.5 million unpaid debt on the property.
On December 15th 2010, Rosen Associates Management Corp and Oakland University received a seizure notice. CWCapital Asset Management, a servicer provider for commercial mortgage back securities, has filed the foreclosure lawsuit against the Shopping Center owners.
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