CIM Group Seeks Forbearance For Loan On 1,180-Unit Multifamily Complex In Alexandria
A global investment firm with nearly $30B in assets is looking for relief on a loan backed by a Northern Virginia apartment community.
CIM Group acquired the 1,180-unit Alexandria apartment property at 140 South Van Dorn St. in 2017, and two recent analyst reports indicate it is having trouble making payments on the loan backed on the asset.
Trepp announced Friday it placed the $60M loan backed by the EOS Twenty-One property on its watchlist because the borrower requested forbearance as a result of the pandemic. Morningstar also released a commentary April 17 saying the borrower requested forbearance because of the coronavirus.
The analysts are both waiting for more financial details from the borrower, and Trepp said the loan could potentially be transferred into special servicing. CIM Group did not respond to requests for comment.
The investor acquired the property in November 2017 for $228M, property records show. The 1,180-unit community, sitting on a 30-acre lot, was built in 1963. CIM has rebranded the property from EOS Twenty-One to Mason at Van Dorn.
CIM, which is based in Los Angeles, has been active in the D.C. area. In December, it acquired the 939-unit Skyline Towers complex in Falls Church for an undisclosed price. It also announced in December it is partnering with Carr Cos. on the redevelopment of the former Crowne Plaza Hotel in Old Town Alexandria into a 122-unit condo tower.
CIM, which was co-founded by Richard Ressler, Shaul Kuba and Avi Shemesh in 1994, owned and operated $29.7B in assets as of Dec. 31, according to its website. CIM has outlined a series of steps it is taking to respond to the coronavirus across its company and its portfolio. The steps include evaluating opportunities to save costs and defer capital expenditures, negotiating rent deferral plans with tenants impacted by the crisis, implementing new sanitation measures at its properties and training its management staff on responding to the pandemic.