From :
https://therealdeal.com/sanfrancisco/2024/04/23/how-low-lnr-...The key thing is that the buyers had already taken on the loan against the building.
Quote :
"The mostly vacant building was auctioned off eight months after Bridgeton Holdings defaulted on a $45 million mortgage loan. The investor bought the tower in 2018 for $62 million, or $685 per square foot.
LNR, a unit of Connecticut-based Starwood Property Trust, had been acting as special servicer for the $45 million loan. The LNR affiliate took over the loan this month from the original lender, Dallas-based LStar Capital.
Bridgeton, which told lenders last summer it would stop payments on the loan, owed more than $47 million by the April 18 auction.
Because it had taken over the loan from LStar, LNR could have simply credited the $6.56 million auction bid against the more than $47 million Bridgeton owed on the building, instead of plunking down cash at auction, according to the Business Times.
"
So really the reduction is vastly less than is stated in the headline.
The key thing is that the buyers had already taken on the loan against the building.
Quote :
"The mostly vacant building was auctioned off eight months after Bridgeton Holdings defaulted on a $45 million mortgage loan. The investor bought the tower in 2018 for $62 million, or $685 per square foot.
LNR, a unit of Connecticut-based Starwood Property Trust, had been acting as special servicer for the $45 million loan. The LNR affiliate took over the loan this month from the original lender, Dallas-based LStar Capital.
Bridgeton, which told lenders last summer it would stop payments on the loan, owed more than $47 million by the April 18 auction.
Because it had taken over the loan from LStar, LNR could have simply credited the $6.56 million auction bid against the more than $47 million Bridgeton owed on the building, instead of plunking down cash at auction, according to the Business Times.
"
So really the reduction is vastly less than is stated in the headline.