- A Westerville, OH Kohl’s store has been transferred to Florida-based Rialto for $7.5 million via sheriff’s sale after the property went into foreclosure under previous ownership, according to Columbus Business First. The ruling came after the previous property owner, SPMC 1 LLC, defaulted on a loan from Deutsche Bank Trust Company Americas. Deutsche Bank appointed Rialto as a special servicer and transferred the loan to the real estate company after SPMC defaulted.
- The Cupples 9 office building in downtown St. Louis has been bought out of foreclosure after years of declining occupancy, according to the St. Louis Business Journal. The property, located at 900 Spruce St., was acquired by Kawa Capital, a Hallandale Beach, FL-based asset management firm. Although the city did not yet have a recorded price for the sale, the property’s appraised value was $5.3 million. The building was taken over by lender Korth Direct Mortgage in May 2024.
- The Baltimore Business Journal reported that a downtown office tower is poised to sell out of receivership for a bargain price less than a year after losing out on a lucrative state lease. An agreement to sell 300 E. Lombard for $6.5 million was given the green light this summer in the Circuit Court for Baltimore City following an online auction that drew four bidders. The winning bidder at the June auction was Imperial Realtors LLC, which lists a principal address in Cumberland, MD. The building’s prospective sales price is a fraction of the $38.3-million price in 2015, when it was sold to PWA 300 East Lombard PA, an entity of JMS Capital Group near Pittsburgh.
- A Greater Cincinnati firm has acquired a Montgomery office building out of receivership from its absentee former Columbus, OH-based owner, reported the Cincinnati Business Courier. Grammas Investments acquired the building at 10700 Montgomery Rd. through Athena II Offices LLC for $2.75 million. The three-story, 68,200-square-foot office building was previously owned by Genoa Property Group, a Columbus real estate company. LCNB National Bank filed a foreclosure action against Genoa in May 2024 regarding a $3.27 million note issued at the time of the 2016 acquisition.
- Bloomberg News reported that dozens of New York City apartment buildings managed by Joel Wiener’s Pinnacle Group and housing thousands of rent-stabilized units are being put up for sale months after falling into Chapter 11. Lawyers overseeing the buildings spread across Brooklyn, Queens, Manhattan and the Bronx said in a Sept. 19 court filing that they’ll market the properties for a potential bankruptcy auction and also solicit offers for a potential refinancing. The deal is part of an agreement with lender Flagstar Bank, which holds more than $564 million in debt on the buildings and initiated foreclosure lawsuits earlier this year.
- The company tied to a mixed-use development site in Royal Palm Beach, FL has declared bankruptcy following a $47-million-plus foreclosure lawsuit. Main Street at Tuttle Royale LLC filed for Chapter 11 reorganization on Sept. 23, the day before a foreclosure auction was scheduled for the 38-acre site, the South Florida Business Journal reported.
- A handful of vacant commercial properties across Portland, OR could be taken back by the city due to delinquent liens. The Portland Business Journal reported that a list compiled by the city’s Revenue Division of the Office of Budget and Finance shows eight vacant and distressed properties identified for foreclosure, each with unpaid liens due to nuisance complaints and code enforcement violations. Once the city forecloses on these properties, they will head to a foreclosure auction.
- 540 West Madison ($216 million | GSMS 2016-GS3 & GSMS 2016-GS4 | CMBX.10), an office property in Chicago’s West Loop, transferred to special servicing despite a DSCR above 4.00x. Morningstar Credit reported that Bank of America had exercised a termination option for a portion of its space, and the borrower is in “non-compliance” in remitting the termination funds to the servicer. A Notice of Default was issued in May 2025. The stay in special servicing may be brief, as the servicer has tagged a modification as the resolution strategy by the end of 2025.
- The loan backed by Langdon at Walnut Park ($60.0 million | 5.6% of BBCMS 2024-5C29 | CMBX.18), a multifamily property in north Austin, has moved to special servicing for non-monetary default stemming from the borrower not making the principal paydown required for failing to secure an affordable housing tax exemption, Morningstar Credit reported. The borrower was required to pay down the loan to achieve both a 1.28x DSCR and an 8.13% debt yield if the exemption was not granted by August 29. I
- Morningstar Credit reported that Gulfport Premium Outlets ($50.0 million | MSC 2015-UBS8, MSBAM 2016-C29, & MSC 2016-UBS9) has transferred to the special servicer ahead of its December 2025 maturity. The Gulfport, MS outlet center has underperformed underwritten levels for most of the loan term, with the 2024 net cash flow 16% below issuance expectations. Occupancy was 85% as of March 2025, down from 92% at issuance.
- Empire Corporate Plaza ($32.0 million | 9.3% of COMM 2015-CR26 | CMBX.9) has landed in special servicing after failing to pay off at its August 2025 maturity, Morningstar Credit reported. A series of tenant departures has caused occupancy at the Rancho Cucamonga, CA office to fall to32% as of March 2025, down from a high of 91% in 2021 and well below the 81% underwritten level.
The post Return to Lender: Week of Sept. 25, 2025 appeared first on Connect CRE.
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