**Return to Lender: Week of May 8, 2025**
**Pappas Restaurants Acquires On The Border**
Houston-based Pappas Restaurants has emerged as the successful bidder in the bankruptcy auction of On The Border Mexican Grill & Cantina. While the terms of the acquisition were not disclosed, the deal is expected to close in the coming weeks, pending court approval. On The Border, which filed for Chapter 11 protection in March, currently operates approximately 60 locations throughout the United States and South Korea.
**Foreclosure Filed Against Don King-Linked Property in Florida**
Palm50 Acres LLC, an entity affiliated with Taylor Made Lending, filed a foreclosure complaint on April 30 in Palm Beach County Circuit Court. The complaint is against DK Arena and Fairway Enterprises, with legendary boxing promoter Don King named as the loan guarantor. The targeted property, located at 1415 45th Street in Mangonia Park, Florida, is a 282,757-square-foot former jai alai fronton. Though the facility is no longer operational, it serves as a parking area for a nearby Tri-Rail station.
**Hotel Indigo in St. Louis Listed for Sale**
Hotel Indigo, located at 501 Olive Street in downtown St. Louis, has been listed for sale after a previous auction attempt fell through. The 88-key hotel is currently under receivership and has been operated by St. Louis-based Midas since March 2023. No asking price has been disclosed in the current listing. Previously, the property had a $4 million auction price.
**Foreclosure Filed Against City Club Apartments in Pittsburgh**
The Union Labor Life Insurance Company has filed a foreclosure action against CCA CBD Pittsburgh LLC, an affiliate of Jonathan Holtzman and City Club Apartments, over the City Club development in downtown Pittsburgh. The complaint involves a default on the mortgage for the former YWCA headquarters at 305 Wood Street. The insurer is seeking more than $4.2 million, including interest, related to the debt, according to the Pittsburgh Business Times.
**100 Pearl Street Office in Hartford Transferred to Special Servicing**
The office property at 100 Pearl Street in Hartford, Connecticut, has been transferred to special servicing ahead of its April 2025 loan maturity. Backed by a $27.0 million loan (5.4% of COMM 2015-PC1), the property has struggled with low occupancy, which fell to 52% in 2018. Despite $10 million invested in renovations in 2019, occupancy only reached 60% as of September 2024. The debt service coverage ratio (DSCR) for the first nine months of 2024 was just 0.24x—well below break-even.
**1800 41st Street Office in Washington Transferred to Special Servicing**
The property at 1800 41st Street in Everett, Washington, was also transferred to special servicing ahead of its June 2025 maturity. The $24.2 million loan (4.8% of COMM 2015-PC1) is secured by an office building whose occupancy dropped to 25% by December 2024. The decline followed the departure of its anchor tenant, Frontier Communications, which had occupied 61% of the property’s gross leasable area. Before Frontier’s exit, the property had outperformed expectations.
