Bush Terminal defaults on $300M in loans

Two loans backing 16 buildings in the Bush Terminal near the waterfront in Sunset Park, Brooklyn, have been transferred to special servicers following a default by the owners, according to Fitch Ratings. The loans — one for $250 million and the other for $50 million — were originated by Goldman Sachs in September 2007 with a maturity date of September 2017, Crain’s reported. The master servicers are Wells Fargo and Midland Loan Services, and LNR Partners is the special servicer. The borrowers, 1-10 Industry Associates and 19-20 Industry City Associates, have been delinquent on the loans for at least 30 days. The owner, Industry City Associates, declined to comment. A few months ago, the city’s Economic Development Corp. started seeking a developer for a 130,000-square-foot site at Bush Terminal, as part of the city’s Sunset Park Vision Plan, which was created in 2009 to revitalize the industrial area. [Crain’s]