Across multiple U.S. markets, lenders and special servicers are increasingly taking control of commercial properties or realizing substantial losses as troubled loans move through foreclosure, liquidation and bankruptcy processes.
In Pittsburgh, the 1900-vintage Chamber of Commerce Building at 411 Seventh Ave. reverted to its lender at a sheriff’s sale after failing to attract outside bids, according to the Pittsburgh Business Times. A CMBS trust organized by an affiliate of Goldman Sachs, the plaintiff and loan holder, entered an opening bid of $1.4 million and faced no competition, allowing it to assume ownership from 411 Seventh Avenue Associates LP following foreclosure.
In West Des Moines, IA, Valley West Mall was liquidated out of its CMBS trust (MSBAM 2013-C7), with Morningstar Credit reporting a pronounced loss. The property sold for $11.0 million, while expenses reached nearly $19.0 million, producing a total loss of $46.3 million and a loss severity of 124% based on the balance at liquidation. The buyer reportedly intends to demolish the existing mall and rebuild on the site.
In South Florida, the long-closed Sixty Sixty Resort in Miami Beach may trade hands through U.S. Bankruptcy Court. The South Florida Business Journal reported that owner Bloom Hotels 6060 LLC, which holds all 87 condo-hotel units at 6060 Indian Creek Dr., has filed a plan of liquidation and has a buyer lined up. The hotel, originally built in 1992 and converted to a condo-hotel in 2005, has been non-operational for several years and has been in Chapter 11 reorganization since February.
In Minneapolis, the Foshay Tower, home to the 229-room W Minneapolis hotel, is on track for a foreclosure sale in mid-December, the Minneapolis/St. Paul Business Journal reported. A Hennepin County District Court judge ruled in late August that the owner of the 32-story tower at 821 S. Marquette Ave. owes more than $42.3 million tied to a defaulted loan, setting the stage for a Dec. 18 sale.
In the Washington, D.C. region, an affiliate of Washington Property Co. did not pay off or refinance a $35 million CMBS loan secured by a 242,000-square-foot office building in Silver Spring, the Washington Business Journal reported. The loan, now in special servicing for the second time in three years, was transferred to LNR Partners in July.
Further capital markets strain is evident in Reston, VA, where NVR, Inc. vacated its space at Plaza America I & II upon its October 2026 lease expiration, according to Morningstar Credit. The tenant had occupied 11.7% of the space in the office complex, whose $125 million CMBS financing moved to special servicing in September 2025 after becoming delinquent and subsequently passing maturity in August 2026. Morningstar noted that receivership appears likely. The same sponsor’s nearby Plaza America Towers III & IV, backing a $76.0 million CMBS loan that has been in special servicing since July 2025, is working through a discounted payoff now being documented in updated servicer commentary.
