CIM Group is on track to give up control of the Central Tower complex, a pair of SoMa office buildings on Market Street, after falling into default on a roughly $98 million loan tied to the site. The 21-story tower at 703 Market Street and the adjoining five-story building at 26 Third Street could land with the lenders by year’s end if a consensual foreclosure deal is finalized. It is another high-profile stress signal for San Francisco’s office market as major tech tenants continue to cut back on headquarters space.
According to The Real Deal, CIM is working on a consensual foreclosure agreement with its lenders, and bondholder notes tied to the debt suggest lenders expect to take control of the buildings by the fourth quarter. The publication reports that the note is in special servicing with Rialto Capital and that CIM said it was unable to keep up with monthly payments once its largest tenant’s lease ran out.
Loan Structure And CMBS Ties
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