Finance  ·  Distress

Nightingale’s 111 Wall Street Faces Foreclosure From Oaktree Capital

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Nightingale Properties is at risk of handing over the keys at 111 Wall Street as its lender looks to foreclose on the office tower.

Oaktree Capital Management initiated the foreclosure action on the property, which is backed by $500 million in loans from Oaktree as well as SKW Funding, PIMCO and Bain Capital, Real Estate Alert first reported

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Oaktree owns the mezzanine loans, and the package includes $89 million in C-PACE financing.

Nightingale Properties and Oaktree officials did not immediately respond to a request for comment.

Wafra Capital Partners — now known as Intervest Capital Partners — formed a joint venture with Nightingale in 2017 and later decided upon 111 Wall Street as an investment in 2019. The two entities purchased the leasehold on the 24-story, 1.1 million-square-foot building in the Financial District for $175 million.

The JV also pumped $100 million into a gut renovation of the 1966 building, which sits near the East River where Wall Street meets the FDR Drive. The improvements failed to attract tenants to fill a 900,000-square-foot vacancy left by Citigroup after it vacated in 2019.

But the purchase didn’t close until early 2020 and the JV didn’t gain full control of the property, done through the acquisition of the fee interest for $220 million from Omnispective Management, until the summer of 2021, Commercial Observer reported at the time.

Intervest is the investment arm under Kuwait’s public pension fund, the Public Institution for Social Security of Kuwait, and did not immediately respond to a request for comment. It’s unclear whether it is still a partner in the building’s ownership.

Mark Hallum can be reached at mhallum@commercialobserver.com.