Return to Lender: Week of July 2, 2026

A retail unit at The Royale, a residential condominium building in Manhattan’s Lenox Hill neighborhood, has returned to its lender. The New York Business Journal reported that MetLife acquired the garage and commercial unit at 188 E. 64th St. for $44.1 million, according to a deed in lieu of foreclosure filed June 29 in New York City property records. The insurance giant is an active commercial lender through its subsidiary, MetLife Investment Management. The company sold the InterContinental New York Times Square Hotel late last year and took over a foreclosed office building in Manhattan’s Garment District in July 2024.

A pair of Old Town Alexandria office buildings on the waterfront are scheduled for upcoming receivership auctions, with one pitched as a potential residential conversion, the Washington Business Journal reported. Real Insight Marketplace and Transwestern’s Mid-Atlantic Capital Markets Group are putting the leasehold interest on 11 and 99 Canal Center Plaza, collectively built in 1987, up for auction. They’re part of the four-building Canal Center office complex. The other two buildings in the complex, which has an assessed value of $126.8 million, are not part of the auctions, which is scheduled for August 3-5.

The Hillsboro Beach Resort, along the ocean in the wealthy town of Hillsboro Beach, FL, is headed to auction after its owner lost a $40-million foreclosure judgment, the South Florida Business Journal reported. Broward County Circuit Court Judge Martin Bidwill awarded the judgment in favor of lender Emerald Creek Capital 3 LLC and against borrowers BNH IV HM TRI LLC and 1159 Hillsboro Mile LLC regarding a mortgage with $26 million in principal outstanding, plus interest and fees. The 81-unit hotel, on 1.93 acres at 1159 Hillsboro Mile, is scheduled for auction July 16.

AuctionAdvisors has been retained to conduct the receivership auction of four income-producing investment properties located in Orange and Newark, NJ. The properties will be offered individually at a live auction on Tuesday, July 14, 2026, at 6:00 p.m. at the Ramada by Wyndham East Orange. The offering includes a diverse collection of stabilized multifamily and mixed-use assets located in two of Northern New Jersey’s strongest rental markets.

The San Antonio Business Journal reported that a collection of vacant buildings on the River Walk is headed to the auction block. The Book Building at 142 E. Houston St. and a collection of adjacent properties are in foreclosure, according to a notice filed in Bexar County records. The ownership entity, Soledad House LLC, is in default on a $3.6-million loan from First United Bank. The properties have an appraised value of about $14.8 million. Owner AMS Commercial Real Estate planned to convert the buildings into a mixed-use development, including an 83-key hotel and 96,000 square feet of retail space. The firm acquired the properties in 2016.

2 Washington ($131.5 million | BMARK 2021-B29, BMARK 2021-B28 & 3650R 2021-PF1) moved to special servicing due to cash flow issues, reported Morningstar Credit. Although the Brooklyn, NY property is listed as multifamily, the units were master leased to Sonder who marketed them as short-term rentals. Sonder went bankrupt and ceased operations in November 2025, effectively cutting off the majority of the cash flow at the property.

The Alabama & South Carolina Multifamily Portfolio ($30.4 million | 3.2% of BMO 2024-5C7 | CMBX.18) moved to special servicing after falling delinquent and defaulting, according to Morningstar Credit. The servicer reports late payments beginning in December 2025 and the loan being designated as delinquent since March 2026. The loan is collateralized by two apartment buildings in Hoover, AlL, and two in Greenville, Sc There’s no reason for the delinquency noted and there has been no financial reporting since issuance.

Morningstar Credit reported that the Park At Saronno ($29.3 million | 7.1% of FREMF 2022-KF125) moved to special servicing for payment default after falling delinquent. The loan is backed by 316-unit multifamily property in Houston. Cash flow has fallen short of underwritten levels throughout the loan term; the most recent T-12 statement sat 22% below underwriting. Occupancy has fallen as well, from 97% at issuance to 85% as of March 2026.

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