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Return to Lender: Week of Oct. 2, 2025
- Twenty years after origination, the Phillips Lighting loan ($27.6 million | WBCMT 2005-C21 | CMBX.1) has been liquidated at a total loss. Morningstar Credit reported the Franklin Township, NJ office building has been REO since 2022 after moving to special servicing when the namesake and sole tenant vacated at the end of 2021.
- The tallest tower in Bloomington, MN’s Normandale Lake Office Park sold for $4 million, representing a significant markdown for the Class A trophy asset, according to the Minneapolis/St. Paul Business Journal. Leasehold rights to the 467,000-square-foot 8500 Tower sold to a partnership that includes Great Neck, NY-based Namdar Realty. The price works out to slightly more than $8.50 per square foot, a nearly 94% drop from the price that the lender, an entity affiliated with Seattle-based Columbia Pacific Advisors, paid last year at a foreclosure auction.
- A foreclosure sale has taken place at 122 S. Main St. in Memphis, where developer Intrator proposed but failed to deliver a Dream Hotel, according to the Memphis Business Journal. Staten Island-based JG Funding Corp. acquired the property for $2 million in a courthouse auction on Sept. 19, according to a deed filed Sept. 30. The company served as the lender for the $99.3-million Dream Hotel project.
- The Denver Business Journal reported that the former Mosque of the El Jebel Shrine in downtown Denver may be close to ending this chapter of its long history with a sale of the foreclosed property. A Denver District Court judge ruled that the El Jebel may be sold in an auction to recoup value for the lender. Cordes & Company LLP has been the receiver since last May and can now move ahead with a plan to auction the property at a reserve price of around $9 million.
- An automotive warehouse in Fort Lauderdale could be seized in a $2.07-million foreclosure lawsuit, the South Florida Business Journal reported. Newtek Bank filed a foreclosure complaint Sept. 25 against Force Majeure I LLC over 12,732 square feet of industrial space at 928-932 N.W. First St. According to the lawsuit, the borrower defaulted by failing to make mortgage payments starting Dec. 1, 2024, and owes $2.07 million in principal, plus interest and fees.
- The ownership of the Freehand Los Angeles Hotel at 416 W. 8th St. has defaulted on $71 million of debt and faces foreclosure, according to published reports. The borrower, a company connected to Generator Hostels, failed to make payments to lender Trimont. London-based private equity firm Queensgate Investments, which owns Generator, purchased the Freehand Hotels brand six years ago for $400 million from Sydell Group.
- Morningstar Credit reported that Fairways At Lowry ($52.4 million | 18.5% of FREMF 2021-KF101) transferred to special servicing after failing to make its August and September payments. The loan is backed by a 450-unit complex in Aurora, CO. It appears that the borrower went through a fairly aggressive eviction process early in 2024 in an attempt to elevate the level of tenancy, resulting in lower occupancy and higher turnover expenses.
- New Center One Building ($31.0 million | JPMBB 2015-C33 & JPMBB 2015-C32 | CMBX.9) has transferred to special servicing after failing to pay off at its September maturity, reported Morningstar Credit. The Detroit office has performed well during its term, with the 2024 net cash flow 24% above the underwritten level. The largest tenant, the Henry Ford Medical Center (29% of the GLA), has a lease expiring in 2027.
- ◦Sale/Acquisition
- ◦Financing
