Chetrit Group's $55M Loan on Mixed-Use Fort Lee, NJ Property Transferred to Special Servicer K-Star Asset Management

A $54.5 million loan tied to 2 Executive Drive, a mixed-use property in Fort Lee, N.J., has been transferred to special servicer K-Star Asset Management due to various defaults.

Loan Details and Property Description

The loan, part of BBCMS Mortgage Trust, 2023-C19, carries a maturity date in April 2023 and a 6.219 percent coupon, requiring interest payments only. 2 Executive Drive encompasses 199,354 square feet of office space and 84 apartment units, housed within a nine-story building. Originally a part of Fort Lee Executive Park, it was acquired by Chetrit Group in 2008 for $86.2 million, undergoing redevelopment thereafter.

Current Challenges and Defaults

The property has faced multiple defaults, including overdue payments since December, unaddressed mechanics liens, an unreported insurance loss, delinquent repairs, and 17 code violations with the state of New Jersey.

Property Background

Constructed in 1986 and redeveloped in 2022, 2 Executive Drive stands as a prominent structure in Fort Lee. The building's transformation from a primarily office-oriented space to a mixed-use property reflects shifting market demands.

Transfer to Special Servicer

The loan's transfer to special servicing was reported in the morning's TreppWire, indicating a significant development in the property's financial situation.