### Return to Lender: Real Estate Foreclosures and Loan Defaults
#### Denver Office Building Surrendered to Lender
The owner of an office building and adjacent parking lot near Coors Field in downtown Denver has transferred the property to its lender to avoid foreclosure on a $24-million note. Seattle-based Urban Renaissance Group signed a deed in lieu of foreclosure, surrendering the building at 2399 Blake St. and the nearby parking lot at 1561 Park Ave. West. Chicago-based EquiTrust Life Insurance Co. has acquired the nearly 3.3-acre Five Points property.
#### Phoenix Historic Warehouse Faces Uncertain Future
A historic warehouse near the Footprint Center in downtown Phoenix remains in limbo following a foreclosure sale. Initially planned to be incorporated into a 25-story Fairmont hotel and residences project, the warehouse at 39 E. Jackson St. was reclaimed by its lender, Aeneas Venture Partners 4 LLC, during a trustee auction. The lender was the sole bidder, purchasing the property for $17.2 million after the developer defaulted on a $15-million loan.
#### Wanamaker Building Foreclosure Case Moves Forward
A court ruling in the historic Wanamaker building’s foreclosure case has favored lender TF Cornerstone, preventing the matter from going to trial. The ruling, issued by the Philadelphia Court of Common Pleas, clears the way for the Center City office building to proceed to auction. TF Cornerstone is attempting to take control from Philadelphia-based Rubenstein Partners, with a damages hearing scheduled for February 25.
#### Capital One Looks to Sell $25M Loan Backed by San Francisco Office Building
Capital One is aiming to divest a $25-million loan secured by a Shorenstein-owned office building, located at 208 Utah St. in San Francisco’s Showplace Square. The 78,740-square-foot office and industrial building is being marketed by Eastdil Secured, with options for buyers to either acquire the debt or purchase the property itself.
#### Foreclosure Auction for Atlanta’s Piedmont Center Delayed Again
The foreclosure auction for Piedmont Center, a 46-acre office complex in Atlanta’s Buckhead neighborhood, has been postponed once more. Morgan Stanley had initially planned to foreclose on a $330.8-million loan tied to the property in January, then delayed it to February. The auction is now scheduled for March, with potential bids expected to be near $200 million, or roughly $91 per square foot. JLL is marketing the property.
#### Pittsburgh’s Parkway Center Faces Foreclosure Action
A foreclosure action has been filed against the ownership of six buildings at Parkway Center in Pittsburgh. Wilmington Trust, as trustee for Wells Fargo Commercial Mortgage Trust, filed the complaint against PWC Pitt LLC, an affiliate of Market Street Real Estate Partner. The lawsuit alleges that PWC Pitt LLC defaulted on loan-related insurance payments in June 2024 and ceased making full monthly mortgage payments in August on a $42-million mortgage issued in 2018.
#### Silicon Valley Office Building Defaults on $72M Loan
A 152,300-square-foot office building at 2390 Mission College Blvd. in Santa Clara, CA, has defaulted on a $72-million loan provided by AB Commercial Real Estate Debt in 2022. The property, built in 2018, is currently 55% vacant and was recently appraised at a value of $73.24 million.
#### Palo Alto Property in Receivership After Loan Default
A former SAP Labs building in Palo Alto, CA, has defaulted on its loan and entered receivership. The 56,279-square-foot property at 3408 Hillview Ave. has been vacant since 2022, resulting in a loss of over $2 million in annual rent payments. The building’s owner, Pollock Financial Group, fell behind on loan payments, leading to the loan’s transfer to special servicer Rialto Capital, which is now seeking a court-appointed receiver.
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These developments highlight continued financial distress in the commercial real estate sector, as high vacancy rates and shifting market conditions impact office and retail properties across major U.S. cities.
About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). In addition, Steve founded Madison Avenue Technology (www.madisonave.tech). With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.
