State House Square’s debt woes return

BY Gregory Seay

HBJ File Photo
HBJ File Photo
Downtown Hartford's State House Square.
Downtown Hartford's State House Square skyscraper is close to defaulting on the balance of its renegotiated $88 million mortgage, two realty debt-trackers say.

Commercial-mortgage tracker Trepp LLC and corporate-debt monitor Fitch Ratings, both based in New York, released separate data reports Friday, one of which indicated the $87.55 million loan that was refinanced down to 4 percent and extended three years through Feb. 2020 was current as of March.

However, Fitch Ratings reported in its survey that the note has been transferred back to special servicing, citing "imminent monetary default."

FBE-State Square LLC and MAC-State Square LLC, listed as the original borrower on State House Square's mortgage, could not be immediately reached Friday for comment.

Wells Fargo is listed as master servicer, C-III Asset Management LLC serving as special servicer. Neither could be immediately reached.

The office complex at 10-90 State House Square, that counts Travelers Insurance and UBS Global Real Estate among its largest tenants, ran into trouble two years ago and landed in "special servicing'' while its owner pursued a "workout'' with the lender.

At that time, Travelers also had notified its landlord that it planned to shrink its office footprint in the 837,225-square-foot office complex located across the street from Constitution Plaza.

State House's owners were granted a new loan package, with a "balloon-payment'' feature that pushed the maturity of the previous 10-year loan from Feb. 2017 to Feb. 2020.

In late 2014, Morton's Steakhouse vacated its 8,000-square-foot space on State House Square's ground floor.