Distress and ownership changes continue to surface across hotel, retail and office assets, with several properties moving through receivership, foreclosure and CMBS special servicing. In downtown St. Louis, the Hotel Indigo has a new buyer in place after a prior auction sale did not close. The 88-key hotel at 501 Olive St. has been in receivership since 2023, with Maryland Heights, MO-based Midas Hospitality serving as receiver and continuing to operate the property. La Salle Gateway Partners LLC signed a purchase and sale agreement with Midas Hospitality on February 6 to acquire the hotel for $2.8 million, while city records show the property carries an appraised value of more than $6.1 million.
On Hawaii Island, BH Properties has acquired the Shops at Mauna Lani after the resort retail center went through foreclosure. According to Pacific Business News, the property encountered distress following the arrest of its previous owner, Jonathan Larmore, who was later sentenced to five years in federal prison in 2023 for manipulating the stock price of WeWork shortly before his real estate investment firm entered bankruptcy. The shopping plaza, located at the entrance of the Mauna Lani Resort, has seen improvements under a receivership. Both the ground lease and the fee simple interest changed hands in separate transactions that together totaled $26 million.
In the CMBS market, the $536 million loan on Chicago’s Aon Center (JPMCC 2018-AON and multiple conduits | CMBX.12) has returned to special servicing, according to Morningstar Credit. Servicer commentary indicates the borrower failed to make a required tenant improvement and leasing commission payment under amended loan terms and has also signaled it is unlikely to repay the loan at its July 2026 maturity. The 2.8-million-square-foot office tower reported 2024 net cash flow that was 12% lower than the prior year and nearly 30% below underwritten levels, while occupancy declined to 66% as of September 2025, down from 88% at issuance. The loan previously transferred to special servicing in February 2023 ahead of its original maturity date and was appraised at $414 million at that time.
Retail distress is also evident at The Oaks Mall in Gainesville, FL. Morningstar Credit reported that the $73.7 million loan (representing 49.2% of COMM 2012-LTRT) was resolved through a foreclosure sale on January 29, with the trust taking ownership. The loan had entered special servicing for a second time in October 2024 after missing a previously negotiated extended maturity. While occupancy at the mall remained strong at 93% at year-end 2025, cash flow fell to breakeven during the same period.
In Brooklyn, the DUMBO Heights Portfolio loan has again transferred to special servicing ahead of its extended maturity, Morningstar Credit reported. The $163.9 million financing (CGCMT 2018-C6, BMARK 2018-B8 and BMARK 2018-B7) is secured by three office properties, after a fourth property in the original collateral pool was previously released. The loan was modified after missing its original September 2023 maturity, extending the term to September 2025 with two one-year extension options. The remaining assets were most recently appraised at $226.3 million in November 2023, and portfolio occupancy was last reported at 72% as of year-end 2025.
