### Return to Lender: Week of Feb. 27, 2025
#### Joann Inc. to Liquidate 802 Stores Nationwide
U.S. Bankruptcy Court Judge Craig Goldblatt has approved the sale of assets for Joann Inc., the Hudson, OH-based fabric and craft retailer. This decision will lead to the liquidation of Joann’s 802 stores across 49 states, according to the *Cleveland Business Journal*. The winning bidders, GA Joann Retail Partnership LLC—an asset disposition firm—and Wilmington Savings Fund Society, are expected to commence going-out-of-business sales at approximately 200 locations that have not yet begun the process.
#### Oaktree Capital Management Takes Control of Minneapolis Office Tower
Oaktree Capital Management has taken ownership of the Two22 tower, the fifth-largest office building in downtown Minneapolis, as reported by the *Minneapolis/St. Paul Business Journal*. The 42-story property at 222 Ninth St. S. was transferred via a deed-in-lieu of foreclosure after the previous owner, an entity tied to Richmond-based Lingerfelt, defaulted on its mortgage. Lingerfelt initially purchased the tower in 2019 for $81 million and later secured a $98.9-million mortgage from a lender associated with Oaktree.
#### Lincoln Place Office Building Returned to Lender
The owner of the Lincoln Place office building in Miami Beach has surrendered the property to its lender in exchange for releasing its $84.71-million mortgage, according to the *South Florida Business Journal*. The property, located at 1601 to 1605 Washington Ave., consists of 110,000 square feet of office space and 30,000 square feet of retail. Nightingale Group affiliates originally purchased the property for $80 million in 2016 before ultimately transferring ownership to GP 1601 Miami Owner LLC, part of Granite Point Mortgage Trust, due to financial difficulties.
#### Barings Acquires San Francisco Apartment Complex
Barings has taken ownership of a Hayes Valley apartment complex in San Francisco that was previously backed by a $75-million loan, as reported by the *San Francisco Business Times*. Rescore 1699 Market LLC, tied to Florida-based Encore Capital Management and San Francisco-based Presidio Development Partners, handed control of the property to Barings through a deed-in-lieu transaction. The property, known as the Rise, is a nine-story, 160-unit apartment complex located at 1699 Market St.
#### Miami’s Miracle Mile Office Property Faces Foreclosure
A Miami-area office building on Miracle Mile in Coral Gables is at risk of foreclosure due to a $24.2-million lawsuit, according to the *South Florida Business Journal*. Wilmington Trust, acting as trustee for a CMBS trust with LNR Partners as the special servicer, filed a foreclosure complaint against CGI 55MM LLC and CGI 55 Parking LLC. The lawsuit involves 25 office commercial condos with 39,585 square feet of retail, 25,567 square feet of office space, and a 615-space parking garage at 55 Miracle Mile. The residential condos within the building are not affected by the suit.
