Rialto moves to foreclose on Brookfield’s Brooklyn Commons

Brookfield Properties is facing a foreclosure push at one of its Downtown Brooklyn office buildings, where Rialto Capital Management alleged a $132.7 million loan default. Rialto, acting as special servicer, filed a pre-foreclosure complaint on Aug. 21 in New York State Supreme Court in Brooklyn, according to PincusCo. The loan, originated in 2013 at $170 million and securitized into a Morgan Stanley Bank of America Merrill Lynch CMBS trust, matured in September 2023. The borrower, Forest City Myrtle Associates — controlled by Brookfield — allegedly failed to pay off the balance at maturity. Rialto claims at least $132.7 million remains […]This article originally appeared on The Real Deal. Click here to read the full story.