For the second time in less than a month, a newly developed apartment building in NoMa is headed for the auction block.

The lender backing the 13-story, 99-unit Tribeca NoMa residential building at 40 N St. NE has filed to foreclose on the building's owners, a joint venture of Urban Investment Partners, Kadida Development, Alliance Development and United Investment.

UIP led the development of the building, which began construction in 2018 and delivered in 2021. The developers funded Tribeca's construction with a $35M construction loan and refinanced the debt on the building with a $39.9M CMBS loan in 2022.

The building was developed as condominiums — each individual unit is listed separately as a parcel in the foreclosure notice — but UIP has been leasing it out as rentals. The building hasn't been able to cover its debt service and has been delinquent on interest payments for more than 90 days, according to the Morningstar Credit database.

The foreclosure auction for Tribeca is set for a June 20 auction at Alex Cooper Auctioneers. The outstanding debt has grown to $41.4M, per deed records.

The loan, which matures on July 9, was transferred to special servicing in April. CBRE Loan Services is acting as special servicer, according to deeds records. Holland & Knight attorneys June Marshall and Jerald Cohn were appointed substitute trustees on April 30.

UIP principal Steve Schwat declined to comment. A CBRE spokesperson didn't respond to requests for comment.

At the end of last year, the property was almost 89% occupied, according to special servicer commentary in the Morningstar Credit database. While occupancy has been steadily increasing, its net operating income has only been able to cover roughly a third of its debt service, according to the commentary.

The building was appraised at $63.6M as of 2022, per Morningstar. Delivered in spring 2021, Tribeca NoMa spans 116K SF and sports a fitness center, penthouse clubroom and a rooftop terrace with fire pit, according to its website. It offers one and two-bedroom units, which range from 741 to 1,202 SF.

UIP developed the property at the site of a former auto repair shop. Schwat, his partner Peter Bonnell, Thomas Kadida and D.C. parking magnate Henok Tesfaye are listed as sponsors on the CMBS loan.

Tribeca's fate is similar to that of a 110-unit apartment building delivered last year by New York developer Ranger Properties. The building at 400 Florida Ave. NE, stalled by pandemic-led delays and financing challenges, is set to be auctioned off later this month, Bisnow first reported.