HreculesPlaza emerged as the fifth largest CMBS loan to become delinquentin January, according to a report from Trepp.
CMBS stands for commercial mortgage-backed security.
The firm, which monitors real estate loan activity reported the $65 million loan moved to delinquent status after being in special servicing, a category where the loan holder has a say over leasing, buildouts and other matters.
The landmark building in downtown Wilmington has struggled with the loss of office space leased byAshland, Inc, the successor to its namesake, Hercules Incorporated.
Owners of the building have been seeking a modification of the loan. (See story below).
Ashland’s chemicals operations spin-off Solenisopted to move to space in north Wilmington.
The building served as headquarters for Hercules, but had commercial tenants over the years.
It was briefly mentioned as a possible home for DuPont spin-off Chemours. Chemours opted to stay in the former DuPont headquarters building, which will undergo an upgrade under new owner Buccini/Pollin Group.
Other loans on the TREPP list were shopping centers, with Rockvale Square ranking as the second-biggest delinquent. The outlet center is in Lancaster, PA and has a Pottery Barn and VF Outlet as tenants.