• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

HFZ loses stake in national warehouse portfolio

HFZ Capital Group's principal Ziel Feldman (Getty)
HFZ Capital Group’s principal Ziel Feldman (Getty)
 

Ziel Feldman’s HFZ Capital Group relinquished its interest in more than 10 million square feet of warehouse space across the country — the first major loss for the company as it struggles with a number of troubled investments.

The Manhattan-based development firm lost its equity stake in a portfolio of 12 last-mile distribution centers it co-owned with Westchester investor Reich Brothers in a UCC foreclosure auction on Wednesday. 

HFZ’s lender, Monroe Capital in Chicago, credit bid the amount it was owed on the $126 million loan to take control of HFZ’s equity interest.

A representative for Monroe Capital confirmed the results of the UCC auction and declined to comment further. A spokesperson for HFZ declined to comment. 

Cushman & Wakefield handled marketing for the auction. 

HFZ had teamed up with Reich Brothers in 2018 to form a joint-venture partnership that has since invested in 11.7 million square feet of warehouse space in Upstate New York, Illinois, Florida, Wisconsin, Ohio, Oregon, Tennessee, Oklahoma and Arizona.

Over the summer, though, HFZ ran into trouble when it failed to make debt-service and quarterly amortization payments totaling about $25 million. Monroe Capital sued in August to collect the loan, which Feldman and his wife had personally guaranteed, but then decided to move forward with the foreclosure action.

It’s the first major loss for HFZ, which is also fending off a similar UCC foreclosure on a portfolio of pre-war Manhattan buildings the company is converting to condominiums. CIM Group earlier this year scheduled a UCC auction for HFZ’s stake in four properties the Los Angeles-based firm holds junior mezzanine loans with a balance of $89.5 million: 88-90 Lexington Avenue, The Astor at 235 West 75th Street, and Fifty Third and Eighth at 301 West 53rd Street.

HFZ sued last month to halt the auction, and the judge in the case granted a temporary injunction.

The company recently laid off a large number of employees in its construction management division. And Feldman last month put his personal home on the Upper East Side up for sale with an asking price of $39 million.

[contact-form-7 404 "Not Found"]

The post HFZ loses stake in national warehouse portfolio appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 07 December 2020
  • The Real Deal
  • Uncategorized
  •  Like
Developer plans 75-unit affordable complex in Pico-Union →← WATCH: “When everyone’s hitting their pro formas, there’s no incentive to try anything else”: Common’s Brad Hargreaves on the future of multifamily
  • Recent Posts

    • Stream Realty OK’d for 100K sf warehouse in Cudahy  May 20, 2025
    • Ruins of Mohamed Hadid’s failed Bel-Air mansion up for auction May 20, 2025
    • Airline seatmaker leases 280K sf warehouse in Huntington Beach May 20, 2025
    • Reality TV personalities Heidi Montag, Spencer Pratt can’t afford to rebuild Palisades home May 19, 2025
    • Historic Fairfax Theatre looks for buyer to drop $45M May 19, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM