Cranberry Woods properties housing new Giant Eagle HQ face possible foreclosure
The owners of three buildings in Cranberry Woods Business Park, a complex in Cranberry Township housing Giant Eagle’s new headquarters, among other businesses, face possible foreclosure after a federal suit was filed claiming the real estate firm defaulted on a $55.5 million loan.
In March, Deutsche Bank Trust Company Americas, acting as trustee on behalf of a lender, filed a complaint in U.S. District Court in Pittsburgh against two entities affiliated by McKnight Realty Partners.
The complaint against McKnight Cranberry II, LP and McKnight Cranberry, L.P. states the realty firm took out a $55.5 million loan in July 2013 from MC-Five Mile Commercial Mortgage Finance LLC for properties at 500, 700 and 800 Cranberry Woods Drive, and that the real estate firm was required to pay the principal balance, along with accrued and unpaid interest, by the loan’s maturity date on Aug. 6, 2023.
The complaint states the funds owed as of Dec. 6, 2023, amount to $41.2 million.
The realty firm has until May 15 to respond to the complaint, according to a stipulation reached by the plaintiff and defendants.
Kirk B. Burkley, one of the attorneys representing the realty firm, did not respond to a request for comment. Izzy Rudolph, McKnight Realty’s president and CEO, could not be reached.
When asked whether Giant Eagle could comment on how the federal suit would affect plans for maintaining the company’s presence at the property, Dan Donovan, senior director of public relations and sports partnerships, referred to the landlord, McKnight Realty.
Giant Eagle held its grand opening last week at 700 Cranberry Woods Drive. Four hundred corporate employees are working in the building that was previously occupied by FedEx.
“Giant Eagle is engaged in a long-term lease agreement for the building, which includes protections that will enable Giant Eagle to maintain tenancy throughout the full lease term regardless of property ownership,” a statement from the company read in part. “As such, we are confident that Giant Eagle and our Team Members will be part of the Cranberry community for many years to come.”
Among the other tenants is Omnicell, a software development company at 500 Cranberry Woods Drive.
