A series of recent reports highlights mounting distress across hotels, offices and multifamily assets in several U.S. markets, with lenders, special servicers and receivers taking more active roles as business plans falter and maturities loom.
In Williamstown, MA, a Howard Johnson Inn is headed to the auction block. According to the Boston Business Journal, auction firm Aaron Posnik & Co. has scheduled a foreclosure auction for August 6 after lender Beacon Bank completed a foreclosure. The property is one of six remaining Howard Johnson locations in the state where the brand originated in 1925, underscoring the pressure on older limited-service hotels in smaller markets.
In downtown Pittsburgh, the K&L Gates Center is being marketed through a receivership sale, reported the Pittsburgh Business Times. A Newmark team is bringing the Liberty Avenue office tower to market at a time when the building is 43% leased. The process follows a default by ownership entity One Oliver Associates LP, which is majority-owned by Chilean pension fund Independencia Asset Management, after lender Pacific Life forced the loan into default. The namesake tenant, law firm K&L Gates, has said it will retain its offices there through at least January 2025.
In Midtown Manhattan, Morningstar Credit reported that efforts to execute a loan modification on The Club Row Building loan have again fallen apart. The $155 million CMBS loan, securitized in JPMBB 2015-C27 and JPMBB 2015-C28, is backed by a 369,000-square-foot office building on West 44th Street between Fifth and Sixth Avenues. The loan transferred to special servicing in January 2025 after missing its maturity date, and occupancy dropped to 66% by the end of 2025 following a string of tenant departures. The servicer now appears to be reverting to foreclosure as the likely resolution.
In Houston, Morningstar Credit noted that 10333 Richmond, a CMBS office loan with a $37.5 million balance and exposure in JPMBB 2014-C22 and CMBX.8, has returned to special servicing. The asset has struggled for years ahead of its August 2026 maturity, with occupancy at just 38% as of March 2026 and net cash flow reportedly below breakeven every year since 2016.
Brooklyn multifamily is not immune to stress. Georgetown Apartments, a $22.6 million loan representing 1.5% of FREMF 2021-K128 and secured by a 110-unit building on Ocean Avenue, transferred to special servicing after several months of delinquency, according to Morningstar Credit. The property had previously reported a debt service coverage ratio above 2.00x and 99% occupancy through its first five years of performance. The loan turned delinquent in April 2026, and Morningstar Credit notes that servicer commentary has not yet clarified the cause of the payment issues.
In Denver, Cherry Tower, an office property backing an $18.2 million CMBS loan that accounts for 1.9% of DBGS 2018-C1 and is referenced in CMBX.12, has moved to special servicing. Morningstar Credit reports that the transfer follows a decline in cash flow after the loss of several tenants, though the loan remains current on debt service. The 226,000-square-foot office building has seen occupancy fall as low as 52% at year-end 2022, with levels fluctuating since then and most recently recorded at 63% in March 2026.
