**Return to Lender: Week of May 22, 2025**
A number of commercial properties across the U.S. have entered foreclosure or special servicing this week, reflecting continued challenges in the real estate and lending markets. Here’s a roundup of notable developments:
– **Washington, DC**
Eye St 73R Owner LLC, the owner of 1625 Eye Street NW, faces a foreclosure sale on June 16. The 12-story, 404,814-square-foot office building, located near the White House, was acquired in 2019 for $259 million by Westbrook Partners and American Real Estate Partners. The LLC currently owes $190.9 million on a $174 million loan that originated from a Brookfield Real Estate Financial affiliate.
– **Houston, TX**
A joint venture between American Liberty Hospitality and Escalera Capital has acquired the 297-room Hilton Houston Westchase. Previously owned by affiliates of Hong Kong billionaire Cai Kui, the hotel had been assessed at $24.1 million in January. It secured a $40.55 million loan that defaulted in 2020. The transaction was brokered by the Plascencia Group.
– **Pittsburgh, PA**
A property at 5607 and 5631 Baum Boulevard, formerly a Day Baum Chevrolet dealership and now home to a busy grocery store, is set for sheriff’s sale on July 7. Developer John Odell and Warner Pacific had redeveloped the site more than a decade ago. U.S. Bank is seeking to recover more than $12.05 million after filing a writ of execution following a foreclosure action last year.
– **San Antonio, TX**
A retail property at 211 N. St. Mary’s Street is scheduled for foreclosure on June 3. The 11,700-square-foot space, located between the Holiday Inn San Antonio Riverwalk and the Drury Inn & Suites, has been vacant for several years. First United Bank holds the note, with $1.7 million in outstanding debt. The loan was extended five times between 2022 and 2024.
– **Orlando, FL**
A nearly 9-acre site located at 7050 S. Kirkman Road near the upcoming Epic Universe theme park is facing a transfer to lender Arena Limited SPV LLC. The property is zoned for multifamily, hospitality, or mixed-use development. Owner Orlando Views LLC filed for Chapter 11 bankruptcy protection in October 2023 and is currently working with Smith Equities for marketing.
– **Concord, CA**
The CMBS loan backing the Sunvalley Shopping Center ($135.7 million and 42.1% of MSBAM 2012-CKSV) has been transferred to special servicing for a second time, according to Morningstar Credit. The borrower is facing imminent monetary default and is unable to make the upcoming insurance payment or secure refinancing before the loan’s September 2025 maturity.
– **Wilmington, DE**
The $50.9 million loan for Bellevue Park Corporate Center (6.8% of MSBAM 2016-C30) is now in special servicing, also due to imminent monetary default. Key tenant BNY vacated the property in 2023, although occupancy rebounded to 72% as of September. Cash flow remains stressed, with a debt service coverage ratio (DSCR) of just 0.71x. The loan matures in August 2026.
– **Colonial Heights, VA**
The Southpark Mall’s loan ($48.8 million and 49.2% of JPMCC 2012-CBX) has entered special servicing again, citing underperformance. Previously, the loan received forbearance and a maturity extension during the pandemic. The sponsor also went through bankruptcy and restructuring during an earlier special servicing period.
– **Atlantic City, NJ**
The $47.5 million loan backed by the Showboat Hotel has moved to special servicing, despite strong financials. The delinquency hit 30 days in March 2025, and the servicer noted other unspecified failures to meet loan conditions. The former Showboat resort, which closed as a casino in 2014, has since been redeveloped into a 475-room hotel and family entertainment complex.
These cases highlight the ongoing instability in the commercial real estate finance sector and underscore the challenges borrowers face in refinancing and maintaining operations in today’s tighter capital markets.
