**Return to Lender: Week of July 31, 2025**
Hilco Real Estate Sales has announced the upcoming sale of a 110-unit affordable housing portfolio located in the Homewood South neighborhood of Pittsburgh. The sale is subject to approval by the United States Bankruptcy Court, with bids due by August 14. The portfolio spans 21 buildings, and all units are covered under a Housing Assistance Payments (HAP) contract, offering the next owner immediate income potential. Currently operating at approximately 80% occupancy—below the local market average of 96%—the properties present significant upside through stabilization, renovation, and improved operational efficiency, according to Hilco.
In Philadelphia, 1650 Arch Street, a 553,000-square-foot office building in Center City, has entered receivership as part of a foreclosure process. According to the Philadelphia Business Journal, the building, which is roughly half-vacant, is at the center of a foreclosure complaint filed by an affiliate of Delphi Financial Group against owner ASI Management. ASI reportedly owes $46.9 million on the loan, and OPEX CRE Management was appointed as the receiver on July 7.
The San Francisco Business Times has reported that a Berkeley apartment building located just one block from the UC Berkeley campus is heading to a foreclosure auction. Academy West Investments, affiliated with Sunstone Development, defaulted on a loan linked to the 112-bed University Park apartment complex and an adjacent structure. Scheduled for auction on August 14 at the Alameda County Courthouse, the properties—located at 1709 Shattuck Avenue and 1710 Walnut Street—have an outstanding loan balance of approximately $31.8 million. The county tax collector has appraised the complex at $32.6 million as of July 2025.
In Opa-locka, Florida, a row of apartment buildings is scheduled for auction following a $5.42 million foreclosure judgment. According to the South Florida Business Journal, the 38-unit complex, comprising 20,769 square feet and located at 1219, 1221, 1225, 1231, and 1241 Sharazad Boulevard, will be auctioned on September 2. Avatar REIT I LLC was awarded the judgment against Orengo Investments LLC and guarantor Maykel Segui. The judgment includes $3.7 million in principal, along with additional interest and fees. M&M Private Lending Group also won a $2.94 million judgment on a second mortgage, which will be paid only after the primary loan is settled.
In Minneapolis, Platinum Bank is seeking to foreclose on a property in the city’s Warehouse District, citing loan defaults exceeding $5 million. As reported by the Minneapolis/St. Paul Business Journal, borrower Hayden B Investments is accused of defaulting by allowing a mechanic’s lien to be filed without consent and terminating a tenant lease. The building in question is located at 327 First Avenue and 20 North Fourth Street, and both loans were issued earlier in 2024.
A property formerly owned by troubled developer NorthSide Regeneration has been transferred to the city of St. Louis following the resolution of an ongoing lawsuit. The abandoned building at 3509 Page Boulevard now belongs to the city’s land bank, the Land Reutilization Authority. The Covenant Blu Grand Center Neighborhood Association, which has long advocated for removing the blighted property from NorthSide’s control, hailed the development as a win for the community, according to the St. Louis Business Journal.
Lastly, a loan tied to a Dick’s Sporting Goods property portfolio totaling $26 million has transferred to special servicing due to imminent monetary default, according to Morningstar Credit. The portfolio, part of JPMCC 2016-JP4 and JPMDB 2017-C5 (CMBX.10), includes six single-tenant retail properties—three in New Hampshire and three in the Midwest. One store has closed ahead of its March 2025 lease expiration, while five locations remain open. The loan reaches maturity in November 2026.
