**Recent Foreclosure and Loan Servicing Updates Across U.S. Commercial Real Estate**
– **Kohl’s Property in Ohio Sold at Sheriff’s Sale**
A Kohl’s store in Westerville, Ohio was sold for $7.5 million via sheriff’s sale after entering foreclosure under its previous owner, SPMC 1 LLC. SPMC had defaulted on a loan from Deutsche Bank Trust Company Americas. As the appointed special servicer, Florida-based Rialto acquired the property following the loan default.
– **Cupples 9 in St. Louis Purchased Out of Foreclosure**
The Cupples 9 office building, located at 900 Spruce St. in downtown St. Louis, has been acquired out of foreclosure by Kawa Capital, an asset management firm based in Hallandale Beach, Florida. The property had faced declining occupancy for years. Although the sale price was unrecorded at press time, the building held an appraised value of $5.3 million. Lender Korth Direct Mortgage took over the building in May 2024.
– **Baltimore Office Tower Sold for a Fraction of Previous Price**
The downtown Baltimore office building at 300 E. Lombard is slated to be sold out of receivership for $6.5 million, following a court-approved online auction. The winning bid came from Imperial Realtors LLC of Cumberland, Maryland. The building was previously sold for $38.3 million in 2015.
– **Montgomery Office Building in Ohio Sells Out of Receivership**
Grammas Investments has acquired a 68,200-square-foot, three-story office building at 10700 Montgomery Rd. in Ohio for $2.75 million. The building was seized via foreclosure after its prior owner, Genoa Property Group, defaulted on a $3.27 million loan issued during its 2016 acquisition. The sale was conducted through Athena II Offices LLC.
– **Dozens of NYC Apartments Under Bankruptcy-Linked Sale Plan**
Dozens of rent-stabilized apartment buildings across New York City, managed by Joel Wiener’s Pinnacle Group, are being marketed for sale following a Chapter 11 bankruptcy filing. Properties span Brooklyn, Queens, Manhattan, and the Bronx. This move stems from an agreement with lender Flagstar Bank, which holds more than $564 million in debt on the buildings and initiated foreclosure litigation earlier in 2024.
– **Royal Palm Beach Development Site Files for Bankruptcy**
Main Street at Tuttle Royale LLC has filed for Chapter 11 bankruptcy one day before a scheduled foreclosure auction of a 38-acre site in Royal Palm Beach, Florida. The filing comes in response to a $47 million-plus foreclosure lawsuit.
– **Portland City May Reclaim Vacant Properties Due to Liens**
The City of Portland, Oregon has identified eight vacant and distressed commercial properties for foreclosure due to unpaid liens stemming from past nuisance complaints and code violations. Once foreclosed, the properties will be auctioned by the city.
– **540 West Madison in Chicago Moved to Special Servicing**
The office property 540 West Madison in Chicago, with a loan balance of $216 million across two CMBS deals (GSMS 2016-GS3 and GSMS 2016-GS4), has been placed into special servicing, despite a debt service coverage ratio (DSCR) above 4.00x. The borrower failed to remit required termination funds after a lease exit by Bank of America. The loan is part of the CMBX.10 index and may be resolved via modification before the end of 2025.
– **North Austin Multifamily Property in Special Servicing**
Langdon at Walnut Park, a multifamily complex in north Austin backing a $60 million loan (5.6% of BBCMS 2024-5C29, included in CMBX.18), has transferred to special servicing due to a non-monetary default. The borrower failed to reduce the principal following the denial of an affordable housing tax exemption, triggering a DSCR and debt yield requirement.
– **Gulfport Premium Outlets Transferred to Special Servicer**
The Gulfport Premium Outlets center in Mississippi, backing a $50 million loan across several CMBS deals, has been moved into special servicing ahead of its December 2025 maturity date. The outlet center has underperformed compared to underwritten expectations, with occupancy falling to 85% in March 2025, from 92% at issuance.
– **Empire Corporate Plaza Defaults on Maturity in California**
Empire Corporate Plaza in Rancho Cucamonga, California, tied to a $32 million loan (9.3% of COMM 2015-CR26, part of CMBX.9), failed to pay off at maturity in August 2025. Occupancy has fallen sharply to 32% as of March 2025, down from a high of 91% in 2021 and well below underwritten expectations of 81%.
