Lenders are taking back assets and restructuring loans across several U.S. markets, with hotel, gaming, parking and office properties all surfacing in recent foreclosure and workout activity.
In downtown Austin, two hotels changed hands via foreclosure at a June 2 Travis County auction, according to the Austin Business Journal. Substitute trustee Angela Zavala submitted winning bids totaling $222.5 million on behalf of the hotels’ lenders, resulting in both properties returning to lender control. The Line Austin, a lakeside property at 111 E. Cesar Chavez St., was the first asset on the block, followed by the recently built Hyatt Centric at 721 Congress Ave., also in downtown Austin.
In the Chicago area, the Hilco Global Real Estate Practice, working with Province LLC, has been retained in connection with the Chapter 11 restructuring of Hawthorne Race Course. The assignment focuses on securing a recapitalization going-concern buyer or investor for the real estate. Qualified bids are being accepted until June 26. The Stuickney, IL property is being marketed as an ongoing operation, with two integrated casino and racing development and licensing opportunities, while also being positioned as a potential prime industrial infill redevelopment site given its location and scale.
In Colorado, the Denver Business Journal reported that recently released documents shed light on the pricing of a foreclosure-driven land transaction in Centennial. A vacant parcel at 7040 S. Kenton St., previously proposed for a Camp Pickle development, was acquired by its former owner through a foreclosure auction. Greenwood Village-based Easterlima Development LLP bought the site back for just over $2.87 million in May, according to a commercial public trustee sales report.
Foreclosure pressures are also evident in downtown Minneapolis. The seven-story Northstar Ramp, a 975-stall parking structure within the Northstar Center complex at 608 Second Ave. S., is scheduled for a foreclosure auction, the Minneapolis/St. Paul Business Journal reported. The owner, Ns Propco Garage LLC, defaulted on a $36.2-million mortgage, prompting the planned sale, which is set for July 2 at 10 a.m. at the Hennepin County Sheriff’s Office. Ns Propco Garage LLC shares an address with New York-based Taconic Capital Advisors LP.
Separately, a large securitized office loan has been modified to address upcoming maturity risk. Morningstar Credit reported that the $130.0-million Federal Center Plaza loan, representing 57.7% of the COMM 2013-CR6 transaction, has had its maturity extended to December 2027. The extension is intended to give the borrower time to negotiate a financeable lease extension with anchor tenant FEMA. The loan transferred to special servicing ahead of its February 2025 extended maturity date; it was originally scheduled to mature in 2013. FEMA had previously signaled plans to relocate to a government-owned building, but those plans were cancelled in 2024, increasing the likelihood of a renewal. The underlying property was valued at $168.0 million in January 2026, down from $309.0 million at issuance in 2013, reflecting a significant decline in value over the life of the loan.
