Plaza Centro 1 owner faces $24.6M collection and foreclosure lawsuit
Plaza Centro 1 shopping center, owner MJS Caguas Limited Partnership, faces a $24.6 million collection and foreclosure lawsuit from U.S. Bank National Association, filed last week in the Caguas Superior Court.
The lawsuit corresponds to an outstanding $28 million loan originated by Canadian Imperial Bank of Commerce in January 2011. The loan is payable on monthly installments of $172,400.82 with an annual interest rate of 6.25%
According to the legal filing, MJS Caguas stopped making the full monthly installments, pertaining to the outstanding principal and interest, beginning April 2020. In the document, U.S. Bank accuses MJS Caguas of defaulting under the terms of the note and loan agreement.
The entire outstanding principal amount of the loan was due on Feb. 1, 2021.
U.S. Bank is asking the court to order the sale of the real estate property through public auction, the immediate appointment of a receiver to take possession of and manage, collect rents and other income derived from the property and the termination of the current property management agreement.
Rents generated from the mortgaged property were assigned to the lender as part of the original terms of the deal. U.S. Bank says MJS Caguas has failed to turn over rents after the being advised of having defaulted on the loan.
Furthermore, the bank seeks the payment of $2.8 million in additional damages for case-related court costs, expenses and legal fees.
U.S. Bank is acting as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-CIBX, Commercial Mortgage Pass-Through Certificates, Series 2012-CIBX.
MJS Caguas Limited Partnership is a Delaware limited partnership. Its managing partner is MJS Caguas Corp., a Delaware company.
Plaza Centro 1 is situated on a plot of land with an area of approximately 26 “cuerdas,” or 102,149 square meters, located in the Bairoa neighborhood of Caguas. It borders Highway 30, going from Caguas to Humacao, and Rafael Cordero Ave.
Kimco Realty Corp. owns the adjacent Plaza Centro 2 retail property which has Costco, Sam’s Club and PetSmart among its tenants.