West Palm Beach’s CityPlace is suing its lender, Credit Suisse Commercial Mortgage, after it alleges the lender tried to halt its refinancing of a $150 million loan.
CityPlace Retail, an affiliate of the Related Companies, said if it can’t refinance the loan, it could lead to a foreclosure, according to a lawsuit filed in Palm Beach County Circuit Court on Friday, the Palm Beach Post reported. On Tuesday, the $150 million loan is set to reach maturity.
The lawsuit also could prevent CityPlace from buying the land underneath the 698,472-square-foot property from the West Palm Beach Community Redevelopment Agency.
CityPlace is now seeking a judge’s order to force its lender to go forward with the refinancing’s closing and the land purchase, according to the Palm Beach Post.
CityPlace is claiming the issue is with the appraisal for the loan. CityPlace Retail alleges Credit Suisse Commercial Mortgage is not accepting CityPlace’s appraiser, the Palm Beach Post reported.
In 2011, CityPlace was previously hit with a foreclosure action, but Related was able to negotiate an extension on the loan and keep the property. In 2016, Trepp, a commercial research company, showed that CityPlace’s two loans from commercial-mortgage backed securities were in default. [Palm Beach Post] — Keith Larsen