An office landlord tied to money manager Pimco has defaulted on $1.7 billion of mortgage notes

An office landlord tied to money manager Pimco has defaulted on $1.7 billion of mortgage notes, per Bloomberg.

The buildings — in San Francisco, New York, Boston and Jersey City, New Jersey — are owned by Columbia Property Trust, which was acquired in 2021 for $3.9 billion by funds managed by Pimco.

“We, like most office owners, are addressing the unique and unprecedented challenges currently facing our asset class and customer base,” Justina Lombardo, a spokesperson for Columbia Property Trust, said in an emailed statement. “We have engaged with our lenders on a restructuring of our loan on seven properties within our larger national portfolio.  We look forward to a collaborative process yielding thoughtful solutions that reflect current market conditions and best serve the interests of all stakeholders.”

The seven buildings owned by Columbia Property Trust were appraised at $2.27 billion in 2021, according to loan documents on a $485 million CMBS that financed part of the debt. Goldman Sachs Group Inc., Citigroup Inc. and Deutsche Bank AG funded the original debt of almost $1.9 billion.

Read the article: https://www.bloomberg.com/news/articles/2023-02-22/pimco-owned-office-landlord-defaults-on-1-7-billion-mortgage#xj4y7vzkg