Return to Lender: Week of May 28, 2026

Willamette Week reported that Prosper Portland has repossessed two buildings in the Old Town neighborhood that had been purchased by a failed shoe startup after securing a $7-million loan from Prosper in 2025. The economic development agency’s board voted unanimously to take possession of the buildings at 208 and 234 NW 5th Ave. after Made in Old Town defaulted on the loan it had secured from Prosper the year prior by failing to secure private funding and falling behind on monthly loan payments. The settlement releases Made in Old Town from all remaining loan payments.

An office tower on Denver’s 16th Street in downtown will hit the auction block this summer after a years-long foreclosure, according to the Denver Business Journal. The property at 216 16th St., known as Columbine Place, is scheduled for an auction in July, according to a new listing. The minimum bid is $700,000, a fraction of the property’s assessed value of nearly $8 million. Currently the property is 31% leased.

Two downtown Cincinnati office towers owned by Philadelphia’s Rubenstein Partners are headed to a sheriff’s sale auction as part of a process that will likely see them revert to their lenders, reported the Philadelphia Business Journal. The 26-story tower at 312 Elm St. and the 15-story tower at 312 Plum St. are listed among properties to be auctioned June 17 by the Hamilton County Sheriff’s Office. As of April 22, when the court-appointed receiver, Colliers’ Paul Plattner, filed his most recent receiver’s reports, 312 Elm St. was 41.7% occupied and 312 Plum St. was 30.6% occupied.

The St. Louis Business Journal reported that an online auction of the 30-story Bank of America Plaza at 800 Market St. is scheduled to open at noon on June 22, with a $2 million starting bid, and conclude on June 24. The upcoming auction is being marketed as a lender-owned sale of the property. The downtown St. Louis building, the fourth-largest office tower in the region, entered receivership in early 2024 after then-owner Positive Investments defaulted in 2023 on a $50-million loan on the property. It is currently owned by GSMS 2015-GC30 Market Street LLC, a lender-affiliated entity that purchased it for $6.3 million in a July 2025 foreclosure sale.

JLL has begun marketing the Two North LaSalle (CSMC 2007-C2) real estate owned (REO) asset for sale. Kroll Bond Rating Agency reported that the 691,410-square-foot, 26-story, Class B office building is in the Chicago Loop and became REO in October 2024. Marketing materials indicate the property is approximately 50% leased, with the largest tenant, City of Chicago, occupying 303,182 sf (44%) through July 2035 with no termination options.

Jersey City Group 1 ($31.3 million | 2.4% of BMARK 2019-B14), Jersey City Group 2 ($32.1 million | 4.2% of JPMDB 2019-COR6) and Jersey City Group 3 ($30.4 million | 2.3% of BMARK 2019-B14) all transferred to special servicing this month after falling delinquent, according to Morningstar Credit. The loans are backed by a total of 27 multifamily properties in Jersey City. They were all underwritten to a sub-1.10x, so there was little wiggle room. Servicer commentary also notes major deferred maintenance across all three portfolios.

The Weston Medical Center Apartments ($84.0 million | 38.7% of FREMF 2021-KF105) moved to special servicing after years of poor performance, reported Morningstar Credit. The loan is backed by a 793-unit property in Houston near the Texas Medical Center. Revenue has stayed fairly constant, but expenses continue to rise, pushing net cash flow from its underwritten level of $5.4 million to $4.0 million by the end of 2025.

The Doubletree Seattle Airport Southcenter ($23.6 million | 31.9% of WFCM 2016-C33) moved to special servicing after exhausting forbearances that were granted after its January 2026 maturity date. Morningstar Credit reported that the property had rebounded after a COVID-related stint in special servicing, with net cash flow in 2022 and 2023 exceeding the underwritten level. However, cash flow has dropped off since then, with the loan’s DSCR falling below breakeven in 2025.

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