Florida $1.3B Office Loan Foreclosure Hits Boca
What Happened to the $1.3B Office Loan? One of Florida’s largest office-backed CMBS debts, a $1.3 billion facility tied to Workspace Property Trust, fell into distress as it approached maturity and was transferred to special servicing in May. The financing was backed by a broad suburban portfolio totaling about 10 million square feet across roughly 146 properties, including office, light-industrial, R&D, and flex space. The collateral spanned 14 markets nationwide. Its scale, and its tie to about half of the borrower’s holdings, made market dynamics especially important. Extension Bought Time The transfer reflected looming maturity risk and difficult refinancing strategies, not a clean payoff. In July 2023, the borrower obtained a two-year extension. That modification gave additional time for leasing efforts and property improvements while lenders avoided an immediate forced workout. The case became a benchmark for Florida office-loan stress. Was the Florida Office Loan Foreclosed...
