Return to Lender: Week of April 30, 2026

G4 Capital Partners has taken title to the 81,000-square-foot mixed-use property at 206 Kent Ave. in the Williamsburg section of Brooklyn, according to Trepp. The New York lender provided $84.25 million of financing in 2020. The property’s previous owner defaulted on the loan, whose balance had grown to $140.5 million by 2023.

The historic Kentucky Home Life Building located at 237 S. Fifth St. in Louisville was purchased at auction on Friday by Thrash Group for $4.67 million, reported Louisville Business First. In 2024, The Thrash Group, under the name FOSCO LLC, filed a lawsuit against the building’s then-owner, Roanoke, Texas-based KHLB Properties, in Jefferson County Circuit Court to foreclose on the property. The Thrash Group claims that KHLB has failed to make payments on two mortgages owned by Thrash Group for the property totaling $10.5 million, according to filings.

The Rhode Island Superior Court has approved the sale of Providence Place to a partnership that includes Pyramid Management Group, Paolino Properties and DW Partners, Providence Business First reported. Receiver Mark Russo recommended the buyer group following a marketing process that drew interest from multiple qualified bidders. Providence Place has been operating under court-appointed receivership since late 2024 after its prior owner/operator, an affiliate of Brookfield Properties, defaulted on a loan tied to the property. The loan originated at $305 million in 2011, was extended, and matured in 2024 with $259 million still owed.

Park Square Portland ($38.8 million | CD 2016-CD2 | CMBX.10) was liquidated this month, resulting in a $28.1-million loss, reported Morningstar Credit. This equates to a 66.2% loss severity on the original balance. Proceeds were $16.4 million, compared to the most recent appraised value of $25.5 million. The loan, backed by a 397,000-square-foot office building in Portland, OR, had been in special servicing since April 2024 following the loss of its largest tenant.

Multiple recent special servicing transfers have been related to revised laws in Texas that resulted in properties either losing or otherwise failing to secure property tax exemptions. Add the Texas SH Portfolio ($55.0M | BBCMS 2024-C9 & BBCMS 2024-C30) to the list, Morningstar Credit reported. The borrower was required to pay down the loan to meet a 10.33% debt yield hurdle after not securing the exemption; negotiations are underway to modify the loan to allow that paydown to occur over time.

Mission Ridge ($34.6M | 17.7% of CSAIL 2016-C6) transferred to special servicing after missing its March 2026 maturity date. Morningstar Credit reported that it’s unclear why the loan failed to pay off, given the Chantilly, VA office property’s 98% occupancy, extremely solid cash flow and leases for the two largest tenants that run until 2043 and 2036, respectively. The property is subject to a ground lease, which Morningstar believes was subject to a reset earlier this year.

Morningstar Credit reported that Embassy Corporate Park ($19.8 milion | 4.4% of CGCMT 2016-GC36) moved to special servicing two months after its January 2026 maturity date. The borrower had asked for a 120-day forbearance to refinance the loan, which necessitated the transfer. The loan, backed by seven buildings in suburban Akron, OH, had paid as expected through the life of the loan with net cash flow exceeding the underwritten level through 2024. However, performance went backwards just before maturity with occupancy dropping to 62% and cash flow dropping by 35% year-over-year.

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