It’s been revealed that a second property belonging to Hartford’s biggest commercial landlord is in foreclosure. Northland Investments has not made a mortgage payment on Cityplace II since June. WNPR’s Harriet Jones reports.
Massachusetts based Northland owns several prestigious office complexes in the city, including the Metro Center, which was revealed last month to be in foreclosure. Now a second court proceeding has come to light, this time over the mortgage on Cityplace II, a tower on Asylum Street and Trumbull. Like the Metro Center, the value of the mortgage on the building is $25 million, and the loan is reaching maturity. Northland spokeswoman Mary Coursey says the company is not in imminent difficulties, and is not looking to sell any properties:
"Like most commercial real estate borrowers, the lack of liquidity is making refinancing at maturity problematic. We are negotiating with the lender to produce an extension that will give us time to get a new loan and a modification of the interest rate."
Finding loans on better terms is particularly difficult in the current economic climate. There is some speculation that Northland is using foreclosure as a tactic to pressure its lenders to the table. Northland acquired Cityplace II in 1999. The next-door identical tower, Cityplace I is owned by a separate company.
For WNPR, I'm Harriet Jones.