Return to Lender: Week of Oct. 23, 2025

The $418.5-million securitized loan against the Palisades Center Mall in West Nyack, NY has been resolved, resulting in a nearly 60% loss to the CMBS trusts that held the mortgage. Trepp reported that the 2.2-million-square-foot property, developed in 1997 by an affiliate of Pyramid Management Group of Syracuse, NY, appears to have been sold for about $175.2 million. The mall had been placed with receiver Trigild, which installed Spinoso Real Estate Group to handle leasing and management.

A troubled $384.8-million loan against a portfolio of 43 apartment properties with 8,671 units that Chetrit Group purchased in 2019 for $522 million has been paid down to $195.96 million. Trepp reported that the CMBS trust that holds the loan has sold 13 of the properties. It has another property, the 108-unit Vista Place Apartments at 821 E. O St. in Russellville, AR, on the sales block through Edge Capital Markets of Dallas, which will take offers on the RealInsight Marketplace auction platform. The 17-year-old student-housing property, on a 7.5-acre parcel near Interstate 40 and Arkansas Tech University, is 19.3% occupied and is being marketed as a repositioning opportunity.

1100 Superior Ave. ($45.1 million | COMM 2014-UBS3) was liquidated this month, resulting in a total loss to the trust, reported Morningstar Credit. The loan, backed by a Cleveland, OH office tower, had been in special servicing since 2021 and became REO in January 2023. The loss eliminated Classes G and H and wrote down Class F by $2.1 million.

1650 Arch Investor LP, the affiliate of ASI Management that owns the 553,000-square-foot office building at 1650 Arch St. in Philadelphia, is scheduled to be sold at a public auction on Nov. 5., the Philadelphia Business Journal reported. Bidding will be conducted online and in person in front of the New York Supreme Court building in Manhattan. The half-vacant Center City property was hit with a foreclosure complaint in the Philadelphia Court of Common Pleas in June and has been in receivership since July. The auction notice notes that the $75.8-million loan originated by an affiliate of Wilmington, DE-based Delphi Financial Group has an outstanding balance of $43 million. Colliers’ Carl Neilson is leading the auction process.

The Austin Business Journal reported that a retail center owned by an entity of Nate Paul’s World Class Holdings, WC Galleria Oaks Center LLC, will hit the auction block Nov. 5. Located at 13376 N. U.S. Hwy. 183 in Austin, TX was most recently appraised at $12.1 million. It was originally scheduled for auction on Aug. 5 and has been scheduled for auction each month since. Next up for auction is the site of a downtown Austin IHOP restaurant at 707 E. Cesar Chavez St., appraised at $26.7 million.

With a 29% occupancy rate, the KeyBank Building at 88 E. Broad St. in downtown Columbus, OH is for sale and the listing is being managed by Dan Dunsmoor from Allied Real Estate Advisors, according to Columbus Business First. The KeyBank building has been plagued with issues since Schottenstein Property Group sold it for $12 million in 2022 to New York-based Baruch Broad Street LLC. Due to maintenance issues and departing tenants, the property went into receivership in 2024. As of January 2025, the current owner owed nearly $11.5 million.

Five apartment complexes and three commercial buildings in Miami’s Little Havana neighborhood could be seized in a $4.6-million foreclosure lawsuit, the South Florida Business Journal reported. CNP XXXV Ventures filed a foreclosure complaint Oct. 15 against VQ Everglades Buildings, VQ Everglades Units and VQ Everglades Homes, along with loan guarantor Victor Antonio Quezada Rijo. The lawsuit is based on six mortgages that were cross-collateralized, meaning a default on one loan resulted in a default on all six loans.

Los Angeles-based Hertz Investment Group faces a deadline before it could face losing its largest asset, the 1.6-million-square-foot, four-building Gateway Center in Pittsburgh, to a loan default and foreclosure. The Pittsburgh Business Times reported that the loan has an outstanding debt balance of more than $84 million, having been placed into special servicing in 2022.

261 Fifth Ave. ($180.0 million | BACM 2015-UBS7 & MSBAM 2015-C25 | CMBX.9) transferred to special servicing after failing to pay off at its September 2025 maturity date. The loan, backed by a 442,000-square-foot office building at Fifth Avenue and East 29th Street in Manhattan, had previously remained current throughout its term.

Morningstar Credit reported that Millennium Corporate Park ($105.0 million | BMARK 2021-B23 & BMARK 2021-B24) has transferred to special servicing ahead of its January 2026 maturity. Main tenant Microsoft, which announced in 2023 that it would sublease its 479,000-square-foot footprint, has removed its sublease listing amid stricter work-from-home policies. The tenant is on a lease for 89% of the GLA through April 2028. The remainder of the space at the six-building office campus in Redmond, WA is vacant after several smaller tenants left their spaces.

Peachtree Office Towers ($64.8 million | CSAIL 2020-C19 | CMBX.14) has transferred to special servicing for payment default after missing the last two payments, Morningstar Credit reported. Occupancy was last reported at 69% as of June 2025 with another 25% of the building space set to roll by mid-2026. The loan is backed by a 620,391-square-foot office building in the Atlanta CBD.

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