• The Atlanta Business Chronicle reported that Texas private equity firm Lone Star Funds has turned over to the keys to 55 Allen Plaza, a 14-story Downtown Atlanta office tower that’s long been anchored by accounting firm EY. Phoenicia Real Estate Holdings XI LLC took title to the building through a deed in lieu of foreclosure. The deal was valued at $57.8 million.  

• A San Francisco judge has granted lenders’ request to place the 3,165-unit Parkmerced apartments into the hands of receiver Douglas Wilson Cos., the San Francisco Business Times reported. Receivership comes roughly three months after Parkmerced owner Maximus Real Estate Partners defaulted on a $1.5-billion loan backed by the complex, failing to repay the debt upon its maturity in December of last year.  

• Westfield Trumbull ($151.3 million | CSAIL 2015-C1, CSAIL 2015-C2, CSAIL 2015-C3 | CMBX.9) has transferred to special servicing after failing to pay off at its March 2025 maturity date. Revenue at the superregional mall has remained remarkably consistent since 2021, but has significantly trailed issuance, pushing down the cash flow. The 2023 net cash flow for this superregional mall in Trumbull, CT was 18% below underwriting, despite occupancy levels remaining above 90%. In late 2022, former sponsor Unibail-Rodamco-Westfield sold the property along with Long Island mall, Westfield South Shore, for a combined price of $196 million. 

• Signature Office Portfolio II ($70.8 million | 7.8% of MSC 2021-L7 | CMBX.15) has transferred to special servicing this month for delinquency, Morningstar Credit reported. The loan is backed by three office properties in Central New Jersey. According to the special servicer, the largest tenant, Regeneron Pharmaceuticals (15% of total GLA) has failed to renew its lease ahead of its August 2025 lease expiration, triggering a required deposit of $162,700 per month. The borrower has indicated they do not have ample cash flow to make this deposit and are requesting a modification. The portfolio reported overall occupancy of 68% as of December 2024, down from 92% at issuance. 

• Updated remittance data shows the transfer of Industry RiNo Station ($60.0 million | 5.4% of BMARK 2022-B35 | CMBX 16) to special servicing, reported Morningstar Credit. Loan payments are reported at 60 days delinquent, but the borrower claims that the funds are stuck in a lockbox and not sweeping over. The collateral is a 177,697-square-foot office complex in Denver, which last report occupancy of 75% in September 2024, down from 95% at issuance. There is upcoming rollover with the largest tenant OneTrust’s (21% of the GLA) lease expiring in July. 

• Morningstar Credit reported that Colonnade Corporate Center ($80.9 million | BMARK 2021-B27 & BMARK 2021-B28 | CMBX.15) has transferred to special servicing for monetary term default. The suburban office in Birmingham, AL saw its occupancy fall to 78% as of September 2024, down from 92% at issuance, after Cadence Bank (14% of GLA) vacated at its March 2024 lease expiration. The DSCR through September 2024 was 1.11x. 

CLARIFICATION: As reported by Connect CRE on March 13, Morningstar Credit initially cited “monetary term default” as the cause behind Esplanade I’s transfer to special servicing. However, Morningstar clarifies that “imminent monetary default” was the cause noted by the special servicer for the Downers Grove, IL office property.