Mon Sep 23 21:51:42 UTC 2024: ## Rochester Industrial Park Faces Potential Shutdown Due to Unpaid Utility Bills

**Rochester, NY** – A $96.8 million loan backing the Tryad Industrial & Business Center in Rochester has been placed in special servicing due to a looming “non-monetary default” stemming from unpaid utility bills.

According to a report from Morningstar, the 3.4 million-square-foot property is facing a potential shutdown as utility companies threaten to cut service due to $2.4 million in outstanding bills.

The property, which was acquired in 2007 by the Brooklyn-based Tryad Group, is currently only 61% occupied and experiencing net cash flow that is 30% below projected levels. Despite this, the loan had previously remained current, with the borrower covering debt service shortfalls for several years. However, the recent inability to cover utility expenses has triggered the special servicing action.

While the industrial sector generally remains strong, Morningstar analysts highlight the unique situation of this property, where a large call center tenant was the main source of revenue. The rising expenses, particularly utility costs, have created a significant strain on the property’s finances.

Tryad Group, owned by Leslie Westreich and Morty Yashar, has not yet commented on the situation.

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