A series of distressed situations and loan complications emerged across U.S. commercial real estate markets during the week of August 13, 2026, spanning office, retail, student housing and restaurant assets.
In South Florida, an out-of-state hedge fund affiliate of Boston-based Hill City Capital was named the winning bidder for Spirit Airlines’ former headquarters, according to a notice of auction results cited by the South Florida Business Journal. The now-defunct carrier identified DPC HoldCo LLC as the successful buyer with a $93.25 million all-cash offer. Hill City Capital, which had served as stalking horse bidder, secured the property in an auction brokered by Savills Eastdil Secured.
In downtown San Antonio, the Vogue Building at 600 Navarro St. changed hands via foreclosure. The San Antonio Business Journal reported that the office property, anchored by La Panaderia Bakery & Café at street level, was sold at an August 5 foreclosure auction for about $5.2 million. The prior owner, Vogue SATX LLC, tied to investor Dr. Sanjay Misra, had defaulted on a $6 million loan from Blue Sky Bank, which subsequently took control of the building, last appraised at $6 million.
Denver’s tallest office tower, Republic Plaza at 370 17th St., also moved deeper into distress. The Denver Business Journal reported that U.S. National Bank Association, the property’s lender, has requested a receiver after ownership defaulted on an approximately $130 million loan. The property is owned by Brookfield Properties and MetLife.
In Miami, the retail component of the Brightline MiamiCentral Station faces a $65 million foreclosure action. The Orlando Business Journal reported that U.S. Bank, acting as administrative agent for two lender groups, filed a foreclosure complaint against Brightline Investment Holdings, DTS DT Retail LLC and property manager FECI Realty. DTS DT Retail, a Brightline subsidiary, owns roughly 124,000 square feet of retail space at 600 N.W. 1st Ave.
Distress is also increasing in the student housing sector near Buffalo. Buffalo Business First reported that Acres Loan Origination LLC, affiliated with Acres Capital, filed a foreclosure complaint in state Supreme Court against the Auden Buffalo student housing community at 2915–2949 N. Forest Road, tied to developer DMG Investments. Acres stated it made two construction loans totaling $32.5 million in early 2021, which matured in January 2024 with the principal remaining unpaid. The filing followed a separate foreclosure action by lenders represented by Deutsche Bank National Trust Co. against the Air Buffalo apartment building at 1265 Sweet Home Rd., also owned by a DMG affiliate.
In the restaurant sector, the Integritty Group, a Bucks County, Pennsylvania-based Qdoba franchisee, is being sued over an $18.3 million debt secured by 41 Qdoba Mexican Eats locations, the Philadelphia Business Journal reported. Bank Midwest filed a federal complaint on August 6, asserting the company defaulted on a $20 million loan agreement executed in April 2025.
Several large CMBS loans have transferred to special servicing. Morningstar Credit reported that the Los Angeles Office/Studio Portfolio, a $1.1 billion loan backed by five office properties and three studios (BXHPP 2021-FILM), moved to special servicing around its August 9 maturity date. While a loan extension was granted, there is now a 30-day extension window to finalize a modification.
The $396 million CMBS loan backed by 85 Tenth Avenue, a 633,000-square-foot office property in Manhattan’s Chelsea neighborhood with Google as its largest tenant, has also been transferred to special servicing due to what the servicer described as an imminent default, Morningstar Credit reported. Cash flow has significantly underperformed underwriting since the pandemic, with 2025 results about 28% below underwritten levels, and the total capital stack includes $229 million of mezzanine debt.
Morningstar Credit further noted that the $325 million Fresno Fashion Fair loan, backed by a portion of an enclosed regional mall in Fresno, California (CMBX.10), entered special servicing ahead of its November 2026 maturity. Despite the transfer, property performance has been strong with occupancy at 96%, and a modification is anticipated. Separately, the $120 million loan secured by 111 Livingston Street, a Brooklyn office property (CMBX.11), moved to special servicing after a sharp decline in net cash flow. Net cash flow in 2025 was reported at 75% below underwriting, pushing DSCR below breakeven for the second consecutive year, with occupancy at 55% as of December 2025 amid ongoing tenant attrition since the pandemic.
