Jamison, a major Korean American real estate company, has reportedly moved a loan tied to a shopping center on 6th Street in Los Angeles Koreatown into a troubled-loan process after it was not repaid at maturity.
According to real estate outlet The Real Deal, the commercial mortgage-backed securities (CMBS) loan for City Center on 6th (3500 West 6th St) was classified as a default after the maturity date arrived in December, and it advanced to special servicing.
Special servicing refers to a stage in which a third-party specialist firm takes over a distressed or high-risk commercial mortgage to handle borrower negotiations, change loan terms, or pursue a sale.
The Real Deal said Jamison is reviewing a workout strategy, a process in which a borrower negotiates with lenders to resolve the loan.
The loan had an original principal balance of $55 million and was set in November 2019. Its current balance was reported at about $51 million.
Jamison said it pursued refinancing through CBRE and signed a term sheet with a CMBS provider that includes key requirements for an investment agreement. The company said closing is expected within 45 days. Jamison also said the transfer to a special servicer was a strategic decision during the refinancing process aimed at securing a maturity extension.
City Center on 6th is a three-story retail property totaling 165,000 square feet, with Korean American supermarket chain H Mart as a key tenant. Occupancy stood at 76% as of September last year.
The property was valued at $75.6 million as of its most recent appraisal in September 2020.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
