Multiple commercial properties across the country have moved deeper into distress, with lenders and servicers escalating enforcement actions ranging from auctions to receiverships and special servicing transfers.
In Brooklyn Center, MN, two office buildings in the Brookdale Corporate Center are slated for an online auction next month after the lender took control more than two years ago, according to the Minneapolis/St. Paul Business Journal. The seller, an LLC sharing an address with New York-based alternative credit platform One William Street Capital Management, has engaged St. Paul-based Suntide Commercial Realty Inc. to run the process on Ten-X. Brookdale Corporate Center I and II, at 6200 and 6300 Shingle Creek Parkway and totaling 232,500 square feet, will be offered with a starting bid of $1,250,000 in a sale scheduled for November 16–18.
In Denver, a judge in Denver District Court has appointed a receiver to assume control of X Denver, the apartment property at 3100 Inca Street and 3000 Inca Street, the Denver Business Journal reported. Court documents show X Denver defaulted on a $17,000,000 loan, prompting the lender to seek third-party oversight of the asset in September. The lender is identified as CMTG JP Finance LLC, which traces back to Mack Real Estate Group.
Morningstar Credit, citing the South Florida Business Journal, reported that the servicer on Pembroke Lakes Mall has formally filed a foreclosure suit and moved to install a receiver. The $260,000,000 CMBS loan (GSMS 2013-PEMB) is secured by 749,000 square feet of a 1.1 million-square-foot mall in Pembroke Pines, FL, and has been in special servicing since failing to pay off at its March 2025 maturity. An appraisal earlier this year valued the collateral at $112,000,000, down 74% from its at-issuance valuation of $427,000,000.
Separately, Morningstar Credit noted that the $745,700,000 Project Prime loan (THPT 2023-THL) has transferred to special servicing. The servicer cited “imminent monetary default” even though the loan does not mature until December 2026. At issuance, the financing was secured by 84 hotel properties totaling 7,993 keys across 21 states. Since then, 12 properties have been released from the collateral pool, resulting in a paydown of $48,300,000.
On the West Coast, a nearly century-old building in Seattle’s Denny Triangle has also encountered loan trouble following the departure of its anchor tenant. The Puget Sound Business Journal reported that the loan secured by the property at 1000 Denny Way was transferred to a special servicer last month after The Seattle Times moved out. The building is now 70% vacant, with only three tenants remaining, all using space for data center operations, and the loan is scheduled to mature this coming February.
