- ING Capital and Münchener Hypothekenbank have filed to foreclose against a $190.9-million loan on the 405,000-square-foot office property at 1625 Eye St. NW in downtown Washington, DC, Trepp reported. The building is owned by a venture of American Real Estate Partners and Westbrook Partners, which purchased it in 2019 for $259 million. The foreclosure auction is scheduled for June 16. The property was built in 2003 and is about 77% occupied.
- The Philadelphia Business Journal reported that Johnson Commercial Real Estate, the owner of Wilmington, DE’s tallest building, is negotiating to restructure its debt as the lender considers options that could include foreclosure proceedings or receivership. A CMBS loan on the 23-story office tower at 1201 N. Market St. was transferred to special servicing after Johnson Commercial failed to pay off the $74-million balance. LNR Partners is considering potential remedies, including a formal foreclosure process or the hiring of a receiver to manage operations at 1201 N. Market St., while continuing discussions with the borrower about alternatives.
- The Grant Building in downtown Pittsburgh is up for sale, according to the Pittsburgh Business Times. The offering from CBRE on the 97-year-old, 460,000-square-foot office tower comes after an affiliate of McKnight Realty Partners was forced into receivership over the property last year amid the decision by its largest tenant, Huntington Bank, to leave the building where it had long operated its regional headquarters. CBRE has been overseeing the building through its receivership since early last year after Delaware-based Wilmington Trust filed a foreclosure action against McKnight over a $37.8-million debt balance.
- Riley Apartments, a Richfield, MN multifamily property, has been sent to receivership following an October foreclosure lawsuit by TruStone Financial Credit Union over a $14.5-million mortgage loan to secure the property. A Hennepin County district judge appointed New Brighton-based Lighthouse Management Group as a limited receiver of the five-story, 82-unit apartment complex located at 600 64th St. W. in Richfield in April, according to the Minneapolis/St. Paul Business Journal. The complex is owned by an LLC tied to Minneapolis-based real estate company North Bay Cos.
- Pearlridge Uptown II ($38.3 million | 6.9% of MSBAM 2017-C33) transferred to special serviing after defaulting at its May 2025 maturity, reported Morningstar Credit. The collateral includes a 154,944-square-foot portion of a superregional mall (Pearlridge Center) in Aiea, HI. The property has performed well since issuance, with the 2024 net cash flow 7% above underwriting.
- 385 Fifth Ave. ($31.6 million | 21.0% of MSBAM 2013-C12 | CMBX.7) has returned to the special servicer ahead of its June 2025 maturity. Morningstar Credit reported that the loan previously transferred to special servicing before its initial November 2023 maturity, but the loan on the Midtown Manhattan office property was modified and extended. The transfer may be to simply paper another extension as the servicer shows an expected resolution date of June 1.
- A securitized loan backed by Takoma Metro Center ($27.6 million | 4.4% of WFCM 2019-C54 | CMBX.13) has transferred to the special servicer for payment default, according to Morningstar Credit. The February payment remains past due, and the servicer is also noting cash management compliance issues. The borrower cites internal accounting issues as the cause rather than underlying performance issues. The Washington, DC flex/office/retail property reported occupancy of 90% as of March 2025, and the 2024 net cash flow was 14% above issuance.
The post Return to Lender: Week of May 29, 2025 appeared first on Connect CRE.
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