**Return to Lender: Week of April 17, 2025**
– A three-building office complex in Houston’s Energy Corridor has been sold following a receivership process. According to the Houston Business Journal, LFFP, a consortium of Houston-based investors led by Mohammed Ali Lakhany, acquired the 570,045-square-foot Ashford Office Complex. JLL brokered the deal. The complex had faced financial difficulties, with a $61-million loan in special servicing since August 2022. In 2023, Trigild’s Chris Neilson was appointed as the receiver by a Harris County court.
– A sheriff’s auction for the LaMalfa Centre Hotel & Suites in Mentor, Ohio, concluded less than a minute after it began, with an anonymous bidder placing a $4.4-million offer, according to the Cleveland Business Journal. The sale, which requires approval from Lake County Common Pleas Court Judge John O’Donnell, aims to satisfy a $2.3-million mortgage loan, along with accrued interest, penalties, and other liens.
– The partially completed Sycamore Orlando Resort project in Kissimmee, Florida, is going to auction on April 30 at 11:00 a.m., as reported by the Orlando Business Journal. The 378-unit condo-hotel project faced delays after its developer, Primeland Real Estate Development LLC, filed for Chapter 11 bankruptcy in August 2024. The company reportedly accrued nearly $41.7 million in debt.
– Two former hotel towers in downtown Baltimore, intended to be converted into apartment units as part of a redevelopment project by Vivo Living, are heading to foreclosure auction on May 7, according to the Baltimore Business Journal. The 27-story towers, formerly the Holiday Inn at 110 W. Baltimore St. and the Radisson at 101 W. Fayette St., will be sold together by Alex Cooper Auctioneers. As of February, the properties were 37% leased, with 23 applications pending.
– The $755-million Innkeepers Portfolio loan (CLNY 2019-IKPR) has been transferred to special servicing due to a maturity default, Morningstar Credit reported. Originally backed by 47 hotels across 16 states, the portfolio faced underperformance, with average occupancy at 69% and a DSCR of 0.69x as of December 2024.
– The $342.6-million La Quinta Hotel Portfolio (LAQ 2023-LAQ) has also moved to special servicing ahead of its initial March 2025 maturity. Although three one-year extension options remain, the borrower has requested a modification. The loan was backed by 58 hotels at issuance but has since been reduced to 29. As of December 2024, the DSCR stood at 0.75x.
– The $325-million Ashford Hotel Portfolio (JPMCC 2018-ASH8) was transferred to special servicing in April due to imminent monetary default. A previous loan modification extended maturity to February 2025, with a now-executed option through February 2026. The portfolio, consisting of eight U.S. hotels, had a reported occupancy of 68% and a DSCR of 0.65x as of December 2024.
– The 1000 Wilshire office tower in Los Angeles, representing $128.4 million (15.1% of GSMS 2018-GS10), was transferred to special servicing after missing its March 2025 maturity. The property is set to lose its largest tenant, Wedbush Securities, whose lease expires in December 2025. Current occupancy is 75%, down from 87% at issuance, and 2023 net cash flow was 45% below original underwriting.
– The Pasadena Office Tower ($39.2 million, 8.4% of CGCMT 2015-GC31) has also been transferred to special servicing, as the borrower indicated inability to repay the loan by its June 2025 maturity. Occupancy in the nine-story building has declined to 69% as of December 2024, from 93% at issuance.
– After defaulting for the second time on over $100 million in debt tied to the Hilton San Francisco Financial District hotel, InterGroup Corporation, the parent of Portsmouth Square Inc., announced a refinancing deal. The rescue package includes a $67-million senior loan from Prime Finance and a $36.3-million mezzanine loan from Cred REIT Holdco LLC. The refinancing provides an initial two-year maturity with three optional one-year extensions, subject to conditions, according to the San Francisco Business Times.
