The owner of 401 Market St. is seeking a discounted payoff on its $52 million debt after Wells Fargo’s exit left the building 28% occupied and pushed the loan into special servicing. With the loan maturing in October, Miller Investment Management hopes to negotiate a deal, highlighting the declining value of Philadelphia’s older office buildings.

The loan was transferred to special servicing in October when Wells Fargo’s 349,770-square-foot lease expired. A March CMBS report confirms Miller’s intent to settle for less than the balance due, pending approval from special servicer Rialto Capital and CMBS investors. Without a deal, foreclosure could result in a sale at a steep loss, said Sarah Helwig, VP at Morningstar Credit.

*Article courtesy of Philadelphia Business Journal

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