Blackstone’s Hughes Center in Las Vegas has entered special servicing
We all knew it was coming! Interesting how Blackstone frames the narrative. If you do not have time to read the entire article, allow me to extract and apply the relevant.
"The $325 million commercial mortgage-backed securities (CMBS) loan on Blackstone’s Hughes Center in Las Vegas has entered special servicing, Commercial Observer has learned."
Hughes Center was a topic of conversation at the local SIOR meeting last week.
“This 2013 investment was substantially written down beginning three years ago due to the headwinds facing U.S. traditional office, a Blackstone spokesperson told CO."
The problem for Hughes Center is much larger than headwinds facing traditional office.
"A source familiar with the special servicing transfer, effective March 15, said the move has zero bearing on Blackstone’s broader conviction in Las Vegas, but rather is a direct reflection of the ongoing weakness in the U.S. traditional office sector."
Happy to hear Blackstone still believes in Las Vegas.
"The source added that— despite Las Vegas’ strong job and population growth — the property, home to a mix of established and start-up tenants, faced occupancy issues given its suburban location and size."
Suburban location? The story would be far different if the buildings were located anywhere along the 215 beltway.
Contributed by Kyle Nagy, President
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