Will new tenant be enough to keep receiver away from Realty Bancorp Equities portfolio?

"Ecrypt announced it inked a long-term, off-market lease for 23,000 square feet at Kravetz' 29899 Agoura Road, once home to the Los Angeles Rams. The deal is valued at more than $7 million, according to a release. Earlier, Kravetz-connected entities defaulted on the commercial mortgage-backed securities debt secured by a five-office-property portfolio located throughout the San Fernando Valley and faced calls to cede control to a court-appointed receiver; 29899 Agoura Road is part of that portfolio."

"A Wells Fargo Bank unit, on behalf of the securities holders, and the special servicer claim the entities owe about $72 million. That's more than the Kravetz portfolio is worth. According to Morningstar Credit, the offices are valued at $50 million, half of their underwriting, months before the pandemic. The offices are only 71 percent occupied, compared to 98 percent at issuance, per Morningstar, but the latest lease amounts to 7 percent of the rentable space."

Norman Kravetz, managing member and principal owner of Realty Bancorp Equities, no longer appears on the company website. Ecrypt signed a long-term off-market lease for 23,000 square feet at 29899 Agoura Road, generating more than $7 million in value. Kravetz-connected entities defaulted on CMBS debt tied to a five-office-property portfolio across the San Fernando Valley, and lenders and the special servicer say the borrowers owe about $72 million. Morningstar Credit values the offices at $50 million and notes occupancy fell to 71 percent from 98 percent at issuance. Loan documents reportedly allow appointment of a receiver upon default; a court ruling is pending.

Read at therealdeal.com