Commercial Real Estate Direct
By Orest Mandzy
June 9, 2023
Accesso Partners has paid off a pair of CMBS loans totaling $78.86 million against office properties it owns and exercised an option to extend the maturity of a third loan totaling $68 million.
The Hallandale Beach, Fla., investment manager paid off the $27.58 million loan against the Platinum Tower, a 312,591-square-foot office building at 400 Interstate North Parkway in Atlanta. The loan, securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2013-C10, had been with special servicer CWCapital Asset Management since last January because it was expected to default at its February maturity. It wasn’t retired at the time, but continued to pay as if it hadn’t matured. It had paid a coupon of 4.246 percent.
Details of the new financing could not be learned, but Accesso said it had lined up enough capital to “further invest” in the 17-story building, which was built in 1987 and renovated in 2011. The property last year was 76 percent occupied and generated $2.49 million of net cash flow, according to servicer data compiled by Trepp Inc.
It also recently paid off the $51.28 million mortgage against the 278,489-sf office building at 6330 West Loop South in Houston. That loan, securitized through Morgan Stanley Capital I Inc., 2018-H3, had paid a 5.07 percent interest-only coupon and matured at the start of last month.
The 6330 West Loop building was nearly fully leased last year, according to Trepp. But cash flow had declined by more than half, as revenue from its three-story parking garage, with 1,046 spaces, declined sharply. The $2.08 million of cash flow was less than needed to fully service the loan. But the loan never missed a payment.
The property’s largest tenant, the Texas Children’s Health Plan Inc., leases nearly two-thirds of its space under an agreement that runs through October 2033.
Accesso also has exercised its option to extend the $68 million loan against the Towers at West End, a 497,234-sf office property at 1550 and 1600 Utica Ave. South in the Minneapolis suburb of St. Louis Park, Minn. The loan was funded by Starwood Property Trust and pays a rate pegged to Libor plus 280 basis points. It could be extended by up to an additional year, taking its final maturity to April 2025.
Starwood had included a $40 million piece of the loan in STWD Mortgage Trust, 2021-FL2, and a $28 million piece in STWD 2022-FL3.
“In today’s restrictive lending environment, financing is very difficult to secure, and our ability to do so reflects the appeal of our assets and the value we create through our institutional-quality operating platform,” said Paul Gaines, chief asset officer at Accesso.