- The Memphis Business Journal reported that an LLC affiliated with Uniondale, NY-based Arbor Realty Trust has acquired six Memphis properties via foreclosure sale. Arbor originally served as the lender for Texas-based KeyCity Capital to acquire the six multifamily properties — representing 1,240 units — in 2021. The firm lent a combined $84.33 million to KeyCity to purchase the properties. New filings with the Shelby County Register of Deeds show that KeyCity fell into default, and the properties went to foreclosure auction. This month, Arbor-affiliated Memphis 6 Port PO LLC acquired those six properties for a combined $42.27 million at auction.
- The Luzzatto Co., a developer that already snapped up two Denver towers for pennies on the dollar earlier this year, acquired the Denver Energy Center at auction for just $5.25 million. In 2013, the nearly 900,000-square-foot office complex sold for $176 million, and JPMorgan Chase purchased the complex in a 2022 foreclosure auction for $88.2 million. Asher Luzzatto told the Denver Business Journal he is considering the conversion of at least one of the towers from offices to residential, a type of project that has unlocked the Denver market for the Luzzatto company.
- A behavioral health hospital property in West Palm Beach is scheduled for auction over a $10.64-million foreclosure judgment, reported the South Florida Business Journal. Palm Beach County Circuit Court Judge Scott Kerner awarded the consent judgment on Sept. 9 to Pasadena, California-based East West Bank against defendants Sunshine Holdings 2019 LLC, Sunview Medical Center LC, Intensive Specialty Hospital LLC, and Stephen Werdiger. The 50,154-square-foot hospital at 1041 45th Street and the 8,006-square-foot medical office at 4802 East Ave. are scheduled for court auction on Nov. 17.
- More than two years after WeWork Capital Advisors (WeCap) defaulted on a $240-million loan backed by 600 California St. in San Francisco, a court-appointed receiver will bring the building to market. The San Francisco Business Times reported that receiver Trigild has tapped Newmark to market the 359,880-square-foot building for sale. Pricing guidance is expected to be in the mid-$300 per square foot range, which would value 600 California in the mid-$120 million range. It was appraised at $124 million in early 2024. WeCap defaulted on the loan in March 20233 and Trigild was appointed as receiver the following November.
- Rialto Capital Advisors, special servicer for the $104.5-million CMBS loan against the 139,921-square-foot office property at 90 Fifth Ave. in Manhattan’s Midtown South area, has hired Newmark to sell the loan, Trepp reported. With foreclosure efforts having already begun, Rialto will take offers for either the loan or property, positioning the latter as a conversion opportunity.
- The legal entities behind nearly 40 Banner’s Hallmark stores in Virginia filed for Chapter 11 bankruptcy protection, saying they are having seasonal cash-flow issues and need to reassess their leases, reported the Kansas City Business Journal. The company, led by CEO Leonard Banner, operates 39 Hallmark Gold Crown Stores in malls and shopping centers in Virginia. The stores’ management company, LBPO Management LLC of Gaithersburg, Maryland, also filed for Chapter 11.
- 32 Avenue of the Americas ($425.0 million | multiple conduits | CMBX.9) transferred to special servicing in advance of its November 2025 maturity date, according to Morningstar Credit. The loan, backed by a 1.2-million-square-foot office tower in the Hudson Square/Tribeca submarket of Manhattan, had previously remained current throughout its term despite sharply declining metrics. However, in the years since the pandemic, both cash flow and occupancy rates have dropped, with the property now just 57% occupied.
The post Return to Lender: Week of Sept. 18, 2025 appeared first on Connect CRE.
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