Downtown Hartford office tower CityPlace II is being foreclosed on to settle an unpaid $25 million debt from owner Northland Investment Corp., court records show.
According to the foreclosure suit, Northland is behind by more than $1.3 million in interest and penalties on the loan taken out three years ago in which the 18-floor office building at 185 Asylum St. was pledged as collateral.
Court papers show the loan, originally made by Deutsche Banc Mortgage in November 2006, passed through several lenders’ hands on its way to being repackaged in the form of Wall Street mortgage securities and sold to investors.
“Like most commercial real estate borrowers, the lack of liquidity is making refinancing at maturity problematic,” said Mary Coursey, a spokesperson for Northland. “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.”
Asylum Street LLC is listed as the plaintiff in foreclosure papers. Asylum Street’s Hartford lawyer declined comment today.
