Distressed activity continued across multiple property types and markets during the week of March 19, 2026, with a mix of foreclosure auctions, title transfers and CMBS loans shifting into special servicing. In South Boston, the owner of a six-acre site emerged as the top and only bidder at a foreclosure auction, bidding $75 million to retain control. The owner, an affiliate of New York-based JT Magen & Co., has previously worked with Extell Development and HYM Investment Group on potential plans, but no formal permitting applications have been filed. The site runs along Dorchester Avenue between the MBTA Red Line’s Broadway and Andrew stations.
In San Antonio, Bexar County, TX records show that Sunrise Realty Trust and Southern Realty Trust have taken title to the Thompson San Antonio – Riverwalk hotel. According to Trepp, citing the San Antonio Business Journal, the 162-room property at 115 Lexington Ave. secures approximately $40.6 million in debt, of which $26.4 million is held by Sunrise. The hotel, originally developed and owned by DC Partners of Houston, struggled to repay its obligations amid competition from nearby hotels.
In Baltimore’s Fells Point neighborhood, a warehouse and office property at 500 S. Bond St. tied to developer Brandon Chasen is headed to foreclosure auction. Alex Cooper Auctioneers is scheduled to conduct the sale on March 26 at the Clarence M. Mitchell Jr. Courthouse, requiring a $100,000 deposit to bid and disclosing no opening bid. The offering adds to a rapid sell-off of Chasen’s local holdings.
In San Francisco, Mack Real Estate Group is marketing a nonperforming $100 million loan backed by 301 Battery St., a 208,000-square-foot, 20th century former Federal Reserve Bank building. CBRE is handling the offering, which, if executed at indicative pricing, would imply a valuation in the low- to mid-$400-per-square-foot range and allow Mack’s lending arm to recover much of the $100 million it originated when the current owner, RFR, acquired the asset for $143 million in February 2020.
Foreclosure pressure is also evident in South Florida, where a Shell-branded gas station at 12000 S. Shore Blvd. in Wellington, FL faces an $8.63 million foreclosure complaint. New York-based Stabilis Lending LLC filed suit in February against borrower AW Petroleum and its guarantors, asserting default after the borrower failed to repay the $8.63 million mortgage at its November 2024 maturity. The loan was originated in 2022, the same year the borrower acquired the property for $11.75 million.
CMBS distress continued to build. The $598.6 million LIFE 2021-BMR Portfolio transferred to special servicing after missing its March 2026 maturity, though a 30-day forbearance was granted to finalize a multi-year extension. The loan, originally backed by 17 office and laboratory properties in Massachusetts and California, has seen 11 assets released, reducing the balance by more than 70%. Denver’s 1.3-million-square-foot Republic Plaza, securing $230.1 million of CMBS debt, moved back into special servicing ahead of a March 2026 maturity after previously receiving a 39-month extension; performance has weakened since the last modification.
Additional CMBS loans entered special servicing as maturities approached or operating performance deteriorated. The $160 million loan on U.S. Steel Tower, a 2.3-million-square-foot office property in Pittsburgh’s CBD, transferred despite occupancy and cash flow tracking near underwritten levels. The $152.6 million National Warehouse & Distribution Portfolio loan defaulted into special servicing following an involuntary Chapter 7 filing against sole tenant CVB Inc., which occupies all five collateral properties, including its headquarters in Nibley, UT. In Colorado, the $133 million Panorama Corporate Center loan, secured by a 781,000-square-foot office complex in Centennial, shifted to special servicing after a missed February 2026 maturity, with near-term lease expirations complicating refinancing.
In New York, the $44.1 million loan backed by The Frontier, a 91-unit multifamily property in Manhattan’s Murray Hill neighborhood, transferred to special servicing after missing its March 2026 maturity. Despite occupancy above 90%, cash flow has hovered near breakeven since 2021, and 2024 net cash flow was 16.3% below underwriting, pressured by both declining revenues and rising expenses.
