PROPERTY SITUATION

• The property is a 460,000 square foot anchored shopping center located in Grand Rapids, Michigan. Occupancy was 98%. The property was incumbered by a mortgage loan with a maturity date in July of 2024 and an outstanding balance of $49 million.
• Prior to the maturity date, the borrower marketed the property and received several offers; all of which indicated that the borrower had substantial equity remaining in the property. The timing of the closing with the selected purchaser was outside of, but within 120 days of the maturity date. Unfortunately, the sale fell through, and the property ultimately sold in December of 2024, which was more than 120 days from the maturity date.

BCA RESOLUTION

• Prior to the maturity date, Brighton Capital Advisors (“BCA”) initially sought and received from the master servicer a 4-month forbearance for the borrower to pay off the loan. The master servicer was able to grant this forbearance, because as BCA pointed out, the Pooling and Serving Agreement for the securitization that this loan was included in provided for such forbearance. BCA was successful in substantially reducing the fees initially requested by the master servicer.
• Unfortunately, the loan did not pay off within the 4-month period of the first forbearance and had to be transferred from the master servicer to the special servicer. BCA rapidly engaged with the special servicer to enter into a new forbearance agreement that was structured for the special servicer’s fee to be based on how quickly the loan paid off.