- The Point Ruston parking garage and the Waterfront Market at Ruston building have been transferred to one of the project’s original lenders as part of a $91-million judgment. American United Resource Co. III (AURC III), an Oregon-based EB-5 lender, took legal ownership of the properties July 22 when the Pierce County Sheriff’s Office issued a deed formally transferring title. The Puget Sound Business Journal reported that there are no current plans to sell the properties.
- After Post Brothers spent years planning a major office-to-residential conversion in Washington, DC, the project is likely off the boards for now, according to the Philadelphia Business Journal. Lender AllianceBernstein LP cast the winning $20.1-million bid at a foreclosure auction last Thursday for the 300,000-square-foot building at 2100 M St. NW. It was the only bid at the auction, held at Alex Cooper Auctioneers’ DC office.
- The Baltimore Business Journal reported that four Fells Point properties linked to developer Brandon Chasen failed to sell at auction on Tuesday, despite bidding that hit $3.575 million. The properties at 523-531 S. Broadway went back to the undisclosed lender following a flurry of online bidding hosted by Alex Cooper Auctioneers. The buildings were owned by an entity of Chasen Cos., the high-profile local development firm run by Chasen, whose financial troubles have had a ripple effect on several prime properties in Baltimore for more than a year.
- Two of San Francisco’s largest hotels are on the verge of being sold, despite missing multiple sale deadlines, according to court filings. The San Francisco Chronicle reported that the 1,921-key Hilton Union Square, the city’s largest hotel, and the 1,024-key Parc 55 are expected to be sold to an unidentified buyer and a “purchase and sale agreement has been signed,” according to a San Francisco Superior Court filing. Both properties were previously owned by Park Hotels & Resorts, which defaulted on its $725-million mortgage on the properties in 2023. An. Oct. 29 sale date has been set.
- A DC Superior Court judge has approved a plan to sell an office-to-residential conversion project in Tenleytown after the project’s developer, an affiliate of Steve Schwat’s Urban Investment Partners, allegedly defaulted on a nearly $29-million loan backed by its stake the property at 4620 Wisconsin Ave. NW, The Washington Business Journal reported that Judge Tanya Jones Bosier issued an order Aug. 5 authorizing Marcus & Millichap to begin marketing the 146-unit conversion project, which UIP is calling the Broadcast. UIP picked up the property in 2016 as part of a larger acquisition from American University that also included the longtime home of National Public Radio affiliate WAMU.
- The lender for the $2-billion Ritz-Carlton Paradise Valley and The Palmeraie residential development has made plans to foreclose on the property amid a tense legal battle, the Phoenix Business Journal reported. The lender, an entity affiliated with Madison Realty Capital, filed a notice of trustee’s sale on Aug. 4. A public auction is set for Nov. 12 at the Maricopa County Superior Court Building in downtown Phoenix. The 122-acre luxury master-planned community has been beset by financing issues and litigation.
- A Mountain View tech campus could be headed for a foreclosure auction roughly a year after its owner defaulted on its mortgage debt, according to a July 15 loan servicer report. The Silicon Valley Business Journal reported that Terra Bella Tech Park has been in distress since the owners failed to repay $120 million in mortgage debt by its June 2024 maturity date. A foreclosure sale is “anticipated” for the third quarter, according to servicer notes.
- The South Florida Business Journal reported that much of the Z Ocean Hotel in South Beach is now subject to a second active foreclosure lawsuit. Wells Fargo Bank, as trustee for a CMBS trust, filed a $12.2-million foreclosure complaint Aug. 6 against South Beach Resort Development and loan guarantor Louis Taic. It concerns 22 units in the 88-unit hotel/condo at 1437 Collins Ave. Those units include the commercial space, common areas and parking deck, but the remaining hotel/condo units are owned by unrelated parties. This follows a $4.89-million foreclosure lawsuit that Z-Hotel Holdings filed against South Beach Resort Development and Taic in July over the same property.
- Deerwood Bank is suing to foreclose on a 60,000-square-foot Minnetonka, MN office building, formerly the headquarters of Equity Bank, alleging in the suit that the building’s owner defaulted on a $5.5-million loan taken out in 2018, reported the Minneapolis/St. Paul Business Journal. According to the lawsuit filed in Hennepin County District Court in June, 5900 Green Oak LLC as of May 31 owed a total of $4,753,708 on the loan, which was secured by a mortgage on the property located at 5900 Green Oak Drive within Minnetonka’s Opus Business Park.
- Hamilton Landing ($60.0 million | CGCMT 2015-GC33 | CMBX.9) has transferred to special servicing after being unable to pay off the loan at its August 2025 maturity, Morningstar Credit reported. The loan, backed by a 406,000-square-foot office building in Novato, CA, had remained current throughout its term, even as the property’s performance dropped off over the past few years. It’s a unique property, having converted airplane hangars on a former military base into office space. Online marketing materials put occupancy at 55%.
- The Market Block Building, a 50,000-square-foot retail property in Troy, NY, has been put in receivership while Sunmark Credit Union pursues a mortgage foreclosure of the prominent downtown building, according to the Albany Business Review. The temporary receiver is Carrow Real Estate Services of Albany, The property owner, Hudson River Place LLC, owes $3.617 million in unpaid principal plus interest, fees and other charges since defaulting on the mortgage in August 2023.
The post Return to Lender: Week of August 14, 2025 appeared first on Connect CRE.
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