Return to Lender: Week of Oct. 30, 2025

Oakland, CA-based B3 Investors has bought the $42-million note backed by an historic Oakland office building at 2201 Broadway, known as the Breuner Building, for roughly $14 million reported the San Francisco Business Times. Records on file with the Alameda County Assessor’s office show that after B3 Investors bought the debt, it acquired the 197,870-square-foot building itself via a deed in lieu of foreclosure. The deal penciled out to roughly $70 per square foot, a 76% discount from what its former owners TMG Partners paid to buy the property in 2016. Lender Wells Fargo placed the note on the market earlier this year, attracting 16 interested buyers who placed bids. The deal came in above the $10 million pricing guidance.

An online foreclosure auction is scheduled for Dec. 15 for the 140-room Park Central Hotel in Miami Beach, Trepp reported. An affiliate of CGI Merchant Group was hit with a foreclosure suit last summer and recently lost ownership of the property. The CGI affiliate bought the property three years ago for $81.45 million, financing the purchase with a $71.11-million loan from Deutsche Bank. The loan, which matured in March 2023, was transferred to Park Central Lender LLC in February.

Two Fells Point properties linked to developer Brandon Chasen will be auctioned separately in November, according to the Baltimore Business Journal. The properties at 1517 Eastern Ave. and 523-537 S. Broadway will go to auction on Nov. 13, with initial deposits of $500,000 required for each. Chasen initially planned for the properties to be transformed into a mix of retail and apartments before his voluntary bankruptcy filing this past July.

The Philadelphia Business Journal reported that a foreclosure complaint has been filed against the One South Broad office tower in Center City, two years after the property’s owner secured a key loan extension it hoped would buy time for a turnaround. New York-based Aion Partners owes a balance of $36.2 million on a $46.5-million CMBS loan backing the 25-story building. Special servicer Rialto Capital Advisors, which filed a foreclosure complaint on behalf of the CMBS trust that owns the debt, has requested that the court appoint a receiver to oversee the 464,000-square-foot building.

The Muse & Eden Pointe ($81.6 million | BBCMS 2024-C24 & BBCMS 2023-C22 | CMBX.17) has transferred to special servicing. Morningstar Credit reported the stated reason was for the appointment of a receiver, but it is unclear which apartment property was entering receivership, as one is in Dallas while the other is in Houston. The loan was recently securitized in 2023, with strong occupancy to date, and the 2024 net cash flow was 11% above issuance expectations.

Morningstar Credit reported that One Cleveland Center ($50.9 million | UBSCM 2017-C6 & WFCM 2017-C42) has transferred to special servicing this month for imminent monetary default. The Cleveland office’s cash flow has underperformed issuance for nearly the entire life of the loan. The 2024 net cash flow was 18% below underwriting, pushing the DSCR to 1.22x. Although the rent roll is granular, nearly a third of the GLA is set to roll by mid-2026.

Park Place I & II Portfolio ($26.7 million | 6.7% of JPMBB 2015-C32 | CMBX.9) has moved to special servicing, after failing to pay off at its October maturity, reported Morningstar Credit. The second-largest tenant, United Lender Services, had a lease expiration in June 2025 and no longer appears on the rent roll. Occupancy across the two suburban Pittsburgh offices had already fallen to 85% as of March 2025, from 96% at year-end 2023, pushing the 2024 cash flow down 17% from issuance. Another large lease to Edgeworth Monitoring (10% of GLA) is set to expire in June 2026.

Related Stories