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Return to Lender: Week of August 28, 2025
- Carolwood’s $130-million deal for the 920,308-square-foot EY Plaza office property at 725 South Figueroa St. in Los Angeles has fallen through, Trepp reported. The property is owned by an affiliate of Brookfield Properties, but is in the hands of a receiver, and backs $305 million of senior mortgage and mezzanine financing. Eastdil Secured has resumed marketing the property for sale with other options on the table, including foreclosure.
- Centre Square, located just west of City Hall at 1500 Market St., is being marketed for sale by CBRE, reported the Philadelphia Business Journal. The 1.76 million-square-foot office complex, which stands as the largest office property in Philadelphia, consists of the connected 36-story East Tower and 43-story West Tower, along with a 450-spot parking garage. CBRE listing agent Jerry Kranzel told the Business Journal the property could sell for more than $100 million, less than a third of the $375 million court records show is owed on the overdue CMBS loan backing it. Centre Square has more than one million square feet of vacant space, and occupancy has dropped to 36%. The complex has been in receivership for more than two years.
- More than a year after a loan on the property came due, 1818 Market St. has been sent to receivership, joining a growing list of office properties in Philadelphia’s CBD facing financial distress. The Philadelphia Business Journal reported that Shorenstein Properties owes $239.5 million on the CMBS loan backed by the 37-story tower. The nearly 1 million-square-foot building sits on the southeast corner of 19th and Market streets, near a handful of other distressed Center City office properties. Hilco Real Estate’s Matthew Mason was named as the court-appointed receiver for 1818 Market on Aug. 1.
- Morningstar Credit reported that Harvard Park ($34.0 million | 3.5% of BANK 2018-BN15) moved to special servicing after years of shedding tenants. The 292,000-square-foot office building in Sacramento was last reported at 61% occupied but subsequently lost its largest tenant. The property was previously under contract with a closing anticipated later this year; however, that sale has now fallen through.
- The McMullen Portfolio ($28.1 million | 11.9% of COMM 2015-CR24 | CMBX.9) moved to special servicing after missing its July 2025 maturity. Morningstar Credit said the loan, secured by 275,000 square feet of office space across eight buildings in Ann Arbor, MI, had remained current throughout the loan term, but a steady exodus of tenants dropped the portfolio occupancy to 65% by the end of 2024 with net cash flow barely covering debt service.
- The Fairmount at Brewerytown loan ($28.0 million | 4.1% of UBSCM 2017-C4 | CMBX.11) moved to special servicing after a payment default, according to Morningstar Credit. The loan backing the Philadelphia multifamily property originally fell delinquent in January 2025 and has moved to the 90+ bucket as of August. The loan had done a stint in special servicing during the pandemic. Performance has been fine, with a 2024 DSCR reported at 1.40x on 87% occupancy.
- 141 Fifth Ave. ($25.0 million | 4.6% of MSBAM 2017-C33) moved to special servicing after sitting vacant for three years. HSBC vacated at its October 2022 lease expiration, Morningstar Credit reported. Although a portion of the space was briefly occupied in 2023, the property has largely been vacant since HSBC left. The borrower had kept the loan current until this month but is no longer able to make payments.
- ◦Sale/Acquisition
- ◦Financing
