Talks Ongoing For Troubled $150M CMBS Loans On Related's CityPlace

CityPlace West Palm Beach

Related Cos is continuing to try and renegotiate its $150M CMBS loan on its massive West Palm Beach lifestyle center.

"Conversations with the special servicer are ongoing," Related spokesperson Joanna Rose told Bisnow in an email. Earlier this year, Related defaulted on two separate CMBS loans for a combined $150M, which is now under special servicing with C-III Asset Management.

"The loan was transferred to special servicing based on a hardship letter from the borrower indicating tenancy/occupancy decline due to increased competition and declining tenant sales, that could potential result in a loan default," CMBS tracking firm Trepp stated in a recent report.

According to Trepp, C-III rejected a discounted loan payout (DPO) earlier this year. "The borrower is preparing 5-year cash flow and occupancy projections in order to propose a loan modification," Trepp states. Major tenants on the property include Macy's, Publix and LA Fitness.

"We remain committed to the asset, and there is currently no impact to the property and our tenants," Joanna stated.

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