Broadway Partners has handed back control of another property to its lenders – this time 120 Howard Street in San Francisco.
Jones Lang LaSalle said in a statement it was marketing the mezzanine loan position of the 188 Spear office building (also know as 120 Howard Street) after Broadway “ceded operational control of the asset to the mezzanine note holder”.
According to Real Capital Analytics, Prudential Real Estate Investors provided $23.2 million in mezzanine financing at the time of the acquisition in May 2007, while KeyCorp Real Estate Capital Markets OBO LB 2007-LL financed the $23.9 million first mortgage.
120 Howard was part of a 25-property portfolio bought from Beacon Capital Partners for an estimated $5 billion.
In July, Boston-based Broadway was forced to hand the keys back to three properties and relinquish control of another seven properties to Lehman Brothers after restructuring a $459 million mezzanine loan secured against the assets.
Broadway has lost other ex-Beacon properties in the wake of the credit crisis, including the Washington, DC office building, 1615 L Street, which was sold to Eliot Spitzer’s family business for $180 million. The 13-storey building was part of a $3.3 billion portfolio of nine properties bought by Broadway in November 2006. 1615 L Street cost $209 million.
Within that same portfolio of properties, Broadway has also lost Boston’s landmark John Hancock Tower. In March, Normandy Real Estate Partners and Five Mile Capital Partners paid just $20.1 million at a foreclosure auction for the tower and two other properties, including the assumption of a $640.5 million mortgage. Normandy and Five Mile had been acquiring discounted pieces of mezzanine debt secured against properties owned by Broadway since June 2008.