**Return to Lender: Week of August 28, 2025**
**Carolwood’s EY Plaza Deal Falls Through**
A $130-million deal by Carolwood to acquire the 920,308-square-foot EY Plaza office tower at 725 South Figueroa Street in downtown Los Angeles has collapsed, according to Trepp. The building, owned by a Brookfield Properties affiliate, is currently under the control of a court-appointed receiver. It supports a total of $305 million in senior mortgage and mezzanine financing. As a result of the failed deal, Eastdil Secured has resumed marketing the property, with foreclosure among several alternatives being considered.
**Philadelphia’s Centre Square Up for Sale**
Centre Square, the largest office complex in Philadelphia totaling 1.76 million square feet, is now being marketed for sale by CBRE, as reported by the Philadelphia Business Journal. Located at 1500 Market Street just west of City Hall, the property includes a 36-story East Tower, 43-story West Tower, and a 450-space parking structure. The complex has over one million square feet of vacant space and is operating at just 36% occupancy. It has been in receivership for more than two years and may sell for over $100 million—less than a third of the $375 million CMBS debt currently backing it.
**1818 Market Street Enters Receivership**
The 37-story office tower at 1818 Market Street in Center City Philadelphia has officially entered receivership after being in financial limbo for over a year. Shorenstein Properties owes $239.5 million on a CMBS loan secured by the nearly 1-million-square-foot building located at the southeast corner of 19th and Market Streets. Matthew Mason of Hilco Real Estate has been appointed as the receiver.
**Harvard Park in Sacramento Heads to Special Servicing**
The 292,000-square-foot Harvard Park office property in Sacramento has been transferred to special servicing, as reported by Morningstar Credit. Backing a $34 million loan that accounts for 3.5% of BANK 2018-BN15, the building has experienced years of tenant attrition and was last reported at 61% occupancy. Its largest tenant has since vacated, and a potential sale anticipated for later this year has fallen through.
**Ann Arbor’s McMullen Portfolio in Trouble**
The McMullen Portfolio—comprising 275,000 square feet of office space across eight buildings in Ann Arbor, Michigan—has moved to special servicing after failing to meet its July 2025 loan maturity. The $28.1 million loan (11.9% of COMM 2015-CR24, CMBX.9) had remained current for most of its term, but a decline in tenant occupancy to 65% by year-end 2024 has strained its net cash flow to near break-even levels.
**Philadelphia Multifamily Property Enters Special Servicing**
The Fairmount at Brewerytown loan, totaling $28 million and representing 4.1% of UBSCM 2017-C4 (CMBX.11), has been placed in special servicing due to a payment default. Morningstar Credit reports that the loan became delinquent in January 2025 and reached the 90+ days delinquency bucket by August. Although it had previously been in special servicing during the pandemic, the property was showing performance stability with a 2024 DSCR of 1.40x and 87% occupancy.
**Vacant 141 Fifth Avenue Property Moves to Special Servicing**
A $25 million loan (4.6% of MSBAM 2017-C33) secured by 141 Fifth Avenue has been transferred to special servicing after the property remained mostly vacant for three years. HSBC, the former major tenant, vacated upon lease expiration in October 2022. Though briefly leased in 2023, significant vacancies persist and the borrower is no longer able to make loan payments, according to Morningstar Credit.
