Will Wells Fargo corner Kravetz on San Fernando Valley portfolio?
Briefly

Will Wells Fargo corner Kravetz on San Fernando Valley portfolio?
"Kravetz-linked entities are on the hook for around $70 million, which is more than five-building portfolio is worth. The 346,800-square-foot portfolio is spread over the San Fernando Valley, including three properties in Agoura Hills — one of which was home to the Los Angeles Rams for years before the team's billionaire owner Stan Kroenke moved headquarters as part of a $10 billion development plan at Warner Center — and one in Calabasas and another in Woodland Hills."
"The five offices were valued at $101.6 million at underwriting in September 2019, a few months before the pandemic was declared and remote work took over. In July, the portfolio was appraised at $48.85 million. Occupancy was 71 percent and properties were not making enough money to pay off debt, running a debt service coverage ratio ranging downward to 0.59."
Norman Kravetz, principal of Realty Bancorp Equities, defaulted this summer on commercial mortgage-backed securities debt tied to a five-office-property portfolio. A Wells Fargo unit is seeking a court-appointed receiver on behalf of the CMBS holders. Kravetz-linked entities owe about $70 million, exceeding the portfolio's current appraised value. The 346,800-square-foot portfolio spans the San Fernando Valley with properties in Agoura Hills, Calabasas and Woodland Hills; one property previously housed the Los Angeles Rams headquarters. The five offices underwrote at $101.6 million in September 2019 and were appraised at $48.85 million in July, with 71 percent occupancy and DSCR falling to 0.59. Prior defaults include over $100 million in Santa Monica loans, and a separate Pasadena office tower faces foreclosure after a $40 million default.
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