Real Estate
Home›Real Estate›Commercial›Gateway Center CMBS loan liquidates, triggering $64.8M…
Gateway Center CMBS loan liquidates, triggering $64.8M loss
The $92.0 million loan entered special servicing in September 2024 and ultimately generated $37.4 million in gross proceeds.
Commercial Observer reports that a $92 million commercial mortgage-backed securities (CMBS) loan secured by Gateway Center in downtown Pittsburgh has liquidated via a note sale, leaving a $64.8 million loss to the CMBS trust, according to an alert from Morningstar Credit.
The loan, which makes up 64 percent of the JPMCC 2013-C10 conduit deal, entered special servicing in September 2024 after it was expected to default ahead of its January 2025 maturity. Gateway Center’s four office buildings had reported occupancy as low as 55 percent in March 2024.
Morningstar Credit said the gross proceeds from the liquidation were $37.4 million, far below the previously appraised value of $69.5 million. Within the trust, two tranches were written off completely, while the Class E junior tranche lost half its value.
The office complex, spanning 1.5 million square feet across One through Four Gateway Center, was purchased in 2004 by Hertz Investment Group for $55 million. The buildings opened in stages between 1952 and 1960 and were later recognized as major contributing properties in the 2013 designation of the Pittsburgh Renaissance Historic District near the Allegheny River.