Return to Lender: Week of April 3, 2025

A 2000s-era office building in Rockville, MD once eyed for conversion to life science use is headed to the auction block, reported the Washington Business Journal. Included in the auction is a 240,000-square-foot building at 805 King Farm Blvd., a parking garage with 250 spaces and easements on three surface parking lots with 200 spaces. Alex Cooper Inc. will conduct the April 18 auction. The owner of the office building and parking garage, King Farm 4 Sub Owner LLC, defaulted on a loan tied to its December 2021 acquisition of the property for $33.2 million.

Seven properties backing $239 million in CMBS and owned by Martin Selig Real Estate (MSRE) have been placed into receivership, reported the Puget Sound Business Journal. The securities special servicer, CW Capital, appointed the receiver, which in turn selected a third-party management company, Kidder Mathews, to operate the affected buildings. MSRE said it continues to work with the special servicer to modify and extend the loan.

The $210-million loan backed by the Cove at Tiburon, a luxury multifamily property in San Francisco, defaulted at its March 2025 maturity, which could prompt a transfer to special servicing, reported Morningstar Credit. The borrower has not given an update on maturity plans. Expenses at the property have outpaced revenue gains, causing the 2024 NCF to trail issuance by 16%.

The Minneapolis/St. Paul Business Journal reported that the owner of City Center at 600 Nicollet Mall and 33 S. Sixth St. in downtown Minneapolis defaulted on a $130-million loan, which has been placed in special servicing. The borrower of the loan and owner of the property failed to pay off the loan or provide a refinancing commitment before the loan maturity date of Jan. 9. Built in 1981, the 1.1-million-square-foot City Center is leased mainly to Minneapolis-based Target Corp., which announced in 2021 plans to vacate the property and put the space up for sublease.

Hyatt Regency Lexington ($29.4 million | 9.0% of JPMBB 2014-C26 | CMBX.8) was transferred to special servicing after failing to pay off at its December 2024 maturity despite being granted a 60-day forbearance to procure take-out financing. Although net cash flow was down in recent years, the hotel reported a TTM net cash flow in September 2024 that exceeded issuance. The special servicer is reviewing workout strategies. The 366-room full-service hotel is in Lexington, KY.

Morningstar Credit reported that Boulevard at Tallahassee ($27.7 million | 9.3% of CSAIL 2015-C1) moved to special servicing after missing its December 2024 maturity. The borrower requested a 60-day forbearance but was unable to find refinance funding. The student housing property in Tallahassee, FL last reported occupancy of 82% in September 2024, down from 98% in August and 99% at issuance.

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