• Martin Selig Real Estate (MSRE) has finalized a deal to hand over ownership of two newer Seattle office buildings to lender Acore Capital, reported the Puget Sound Business Journal. They include 400 Westlake, a 230,000-square-foot property that currently has 94% availability, and the 215,567-square-foot Federal Reserve building downtown. MSRE last year defaulted on a $240-million loan for the two projects.  

• A UBS Realty Investors affiliate has taken back the Orion apartment complex on the Oakland, CA waterfront due to a $118.8-million delinquent loan, SiliconValley.com reported. The apartments were developed by an affiliate of Signature Development Group, which in 2017 obtained a loan from the UBS entity and has now turned over the property in a deed in lieu of foreclosure. 

• The 85,000-square-foot Comfort Inn & Suites at 120 E. Lombard St. in Baltimore failed to sell at auction after missing an undisclosed reserve benchmark during an online auction where bidding hit nearly $6 million. The Baltimore Business Journal reported that the auction was held on the auction platform of Ten-X, which hosted the sale in partnership with Colliers. The 97-room hotel is currently vacant and can’t take bookings because of a broken elevator system. 

• The Washington Business Journal reported that Morningstar Community Development is under contract to purchase a Washington, DC office building that was slated for redevelopment as luxury condominiums until its owners filed for Chapter 11 bankruptcy last year. A bankruptcy court judge authorized payment of $12.7 million for 2626 Pennsylvania Ave. NW, the former regional headquarters of the Salvation Army. 

• Denver-based Canopy Real Estate Partners has made its Phoenix debut, acquiring a distressed multifamily property in Surprise, AZ, the Phoenix Business Journal reported. More purchases could be on the horizon. The private equity firm paid $8.8 million in cash to an entity tracing to Next Generation Capital LLC for the newly built ParkView Townhomes at 16601 N. Parkview Pl. The property was acquired through a lender-assisted sale below the loan basis. Canopy partnered with TBBG Investments on the all-cash transaction. 

• The owner of an unfinished office development in Aventura filed for Chapter 11 reorganization to halt an impending foreclosure auction, according to the South Florida Business Journal. Miami-based Aventura Eco-Offices Property Owner submitted its Chapter 11 petition in U.S. Bankruptcy Court in Miami on April 21. The 1.63-acre site at 21291 N.E. 28th Ave. was scheduled for foreclosure auction April 22. 

• Planned developments Lake Bennett Village-Ocoee LLC and Maine Boulevard II LLC filed for Chapter 11 bankruptcy protection on April 7 in the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division. The Orlando Business Journal reported that the filings triggered automatic stays on certain collection and legal actions against the entities and occurred days before scheduled foreclosure sales of the properties. 

Morningstar Credit this week reported that several properties have transferred to special servicing. They include the following: 

• The Oak Street Net Lease Portfolio ($425 million | OAKST 2023-NLP & multiple conduits | CMBX.11) moved to special servicing following the rejection of several of the master leases as part of tenant bankruptcies. The loan is backed by 42 properties that were 100% leased to six tenants: Save Mart, Big Lots, Badcock, NAICO, Nation Safe Driver and Big Y, all subject to triple-net leases. 

• Westfield Wheaton ($234.6 million | CSAIL 2015-C1, CSAIL 2015-C2, & CSAIL 2015-C3 | CMBX.9) went to the special servicer this month after missing its March 2025 maturity date. The regional mall in Wheaton, MD reported a 2024 net cash flow that was 12% below underwritten levels, as expense increases have outpaced revenue gains. The special servicer is exploring workouts with the borrower.

• Waterfront at Port Chester ($133.5 million | MSBAM 2015-C22 & MSC 2015-MS1) has transferred to the special servicer after failing to pay off at its April 2024 maturity. The Port Chester, NY retail property reported a below-breakeven DSCR of 0.87x as of September 2024, caused by lower-than-anticipated revenue. Occupancy was down to 87% as of September 2024 from 96% at issuance. 

• Campbell Technology Park ($60 million | 15.0% of WFCM 2015-NXS2 | CMBX.9) transferred to special servicing this month ahead of its June 2025 maturity date. The 280,864-square-foot office in Campbell, CA has underperformed with occupancy steadily declining over the past several years.