Distress continued to surface across multiple U.S. commercial real estate markets during the week of March 5, 2026, with hotels, offices and mixed-use assets either trading at discounted pricing or reverting to lenders through foreclosure and receivership processes.
In Portland, the Portland Marriott Downtown Waterfront at 1401 S.W. Naito Parkway was acquired by Portland Waterfront Hotel Acquisition LLC, an entity reported to be tied to New York-based asset manager Sculptor, according to the Portland Business Journal. Marriott continues to manage the property under a long-term agreement with an entity affiliated with California-based DiNapoli Capital Partners, which purchased the hotel in 2013 for $82,700,000. Bank of America originated a $71,000,000 refinancing loan to DiNapoli in 2018, but the borrower stopped making regular payments in February 2024 and owed $68,100,000 in principal and nearly $800,000 in interest.
In Oakland, the 118,000-square-foot Leamington building at 1814 Franklin Street sold for $14,400,000, or $122 per square foot, the San Francisco Business Times reported. Buyer Leamington LLC, led by Ed Hemmat in his first Oakland acquisition, purchased the property from CIT Bank. The bank had seized control of the asset in January 2025 after prior owner Stockbridge Real Estate fell behind on a $35,500,000 loan backed by the building.
Receiver-driven sales also shaped the Seattle market. A 16-unit mixed-use asset known as Coda Apartments, at 2508 N. 50th Street in the Wallingford neighborhood, sold through a receiver on March 2 for $4,000,000, below its assessed value of $4,200,000, the Puget Sound Business Journal reported. The six-year-old property, positioned for students at the nearby University of Washington, includes 2,380 square feet of parking and an 840-square-foot street-level retail space.
Another Seattle asset tied to Martin Selig Real Estate changed hands via a receiver’s deed. Augustine Capital Partners acquired a 0.4-acre parcel at 220 Elliott Avenue West, currently a 91-stall surface parking lot near Climate Pledge Arena and Queen Anne Beerhall. The Puget Sound Business Journal noted that this sale process had been underway for more than a year.
In Philadelphia, the Philadelphia Business Journal reported that PMC Property Group and Dean Adler are under agreement to acquire the 1.76-million-square-foot Centre Square office complex at 1500 Market Street. The buyers plan a major redevelopment, including a residential and hotel conversion of the East Tower and a partial residential conversion of the West Tower. The partners are expected to pay less than $100,000,000 for the distressed Center City property, which last traded for nearly $330,000,000 in 2017.
In Manhattan, the Scribner Building at 597 Fifth Avenue, referenced at $105,000,000 and representing 30.5% of the COMM 2014-UBS4 transaction and part of CMBX.8, is under contract to be sold, according to Morningstar Credit. Published accounts indicate that Aurora Capital Associates and AVRS Partners are teaming to acquire the asset after it reverted to the lender in a foreclosure sale. The building has been in special servicing since October 2020.
Foreclosure activity also intensified in Baltimore, where a Chasen Cos. property in the Harbor East neighborhood is returning to its lender after a foreclosure auction drew no bids, the Baltimore Business Journal reported. The auction covered the 72,000-square-foot street-level portion of the former Meyer Seed retail and warehouse complex at 600 S. Caroline Street and excluded any future development potential above the existing shell. With no offers at an opening bid of $3,500,000, the property reverted to Oregon-based lender Standard Insurance Co.
In Washington, D.C., the leasehold interest in a large Northwest D.C. office property at 4000 Connecticut Avenue NW, formerly occupied by Intelsat’s headquarters and later the Whittle School & Studios, is scheduled for a foreclosure auction, according to the Washington Business Journal. The leasehold is expected to be sold on April 8 at Alex Cooper Auctioneers’ D.C. office. Affiliates of 601W Cos. and Berkley Properties reportedly owe $132,200,000 on a note held by an affiliate of Winthrop Capital Partners, while the property’s 2026 assessed value stands at $75,700,000.
In Cincinnati, Morningstar Credit reported that 580 Walnut Street, associated with a $29,700,000 loan representing 4.0% of JPMDB 2017-C5, has transferred to special servicing after the loss of its largest tenant. The 246,000-square-foot office property with some lower-level retail had performed through most of its loan term until payments became inconsistent and then delinquent in late 2025. This timing coincided with the lead-up to Fifth Third Bank’s lease expiration in December 2025; the bank had occupied 76% of the property’s gross leasable area but had sat dark for a period before the lease expired. Without new leasing, the asset is estimated to be approximately 12% occupied.
