Return to Lender: Week of April 16, 2026

The eastern portion of the troubled MoZaic office and retail complex in Minneapolis’s Uptown neighborhood has traded in a foreclosure sale for $7 million, reported the Minneapolis/St. Paul Business Journal. First National Bank of Omaha (FNBO), the Nebraska-based mortgage lender for the property, was the winning bidder for MoZaic East at a Hennepin County Sheriff’s auction. The nearly 200,000-square-foot building is located at 1330 Lagoon Ave. The sale comes about a month after FNBO acquired in a separate foreclosure auction the MoZaic West building and Lagoon Cinema theater, also part of the larger MoZaic complex and also for $7 million.

The loan on 597 Fifth Ave. in Midtown Manhattan ($105.0 million | COMM 2014-UBS4 | CMBX.8) was liquidated this month at a 73% loss severity, Morningstar Credit reported. The sale price was roughly in line with the most recent appraisal of $63.2 million, but liquidation expenses helped push the loss above $76.0 million. The loan had been in special servicing since 2020 and went REO in 2025. Losses were absorbed by classes E, F, and G.

Dean Adler is under contract to buy the Franklin Mall in Northeast Philadelphia, reported the Philadelphia Business Journal. He did not disclose the purchase price. The once prominent outlet mall, developed in 1989 as Franklin Mills and later rebranded as Philadelphia Mills, has been in receivership since 2024. Adler plans to build a youth sports facility along with workforce housing, restaurants, a hotel and a water park at the site of the 1.6-million-square-foot mall.

A debt-troubled office building in downtown San Francisco is heading for a foreclosure auction next month, the San Francisco Business Times reported. The auction for 580 Market St. is scheduled to take place on May 7 at 1:30 p.m. outside the Memorial Court gates between 301 and 401 Van Ness Ave. The 35,000-square-foot Class B office building, constructed in 1923 and located above the Montgomery BART station, has been the subject of debt challenges since last year. In October, building owner La Jolla-based Paragon Co. was served a default notice on a $15.7-million loan that had matured in June and was backed by the property.

The Washington Business Journal reported that JLL is marketing a $140-milliion loan on an office building near Capital One Arena anchored by a major law firm and media company. The loan hit the market in the lead-up to its June maturity date, providing investors a potential path to ownership. Although marketing materials don’t specify the building’s address, its description closely matches the profile of 700 Sixth, the Business Journal reported.

Morningstar Credit reported that One & Three Allen Center ($470.0 million | ALEN 2021-ACEN) has moved to special servicing ahead of its April 2026 maturity. The two downtown Houston office towers were 76% occupied as of December 2025, down from 80% at issuance. Net cash flow has dropped in sync, with 2025’s NCF sitting 29% below the underwritten level. The loan originally matured in April 2023, and all three one-year extension options have been exercised.

12555 & 12655 Jefferson ($111.0 million | JMMDB 2019-COR6 and unsecuritized notes) moved to special servicing after missing several payments, Morningstar Credit reported. The loan, backed by two office properties totaling 194,000 square feet in the Playa Vista submarket, had paid as agreed until February 2026 when it first became delinquent. The property lost WeWork as its lead tenant in 2022, bringing occupancy down from 80% to 41%, and hasn’t seen any meaningful recovery. The borrower is looking for a modification or forbearance.

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