### Return to Lender: Week of March 20, 2025
**Texas Firm Transfers Ownership of Atlanta Office Tower**
The *Atlanta Business Chronicle* reported that Texas private equity firm Lone Star Funds has relinquished ownership of 55 Allen Plaza, a 14-story office tower in Downtown Atlanta that has long been anchored by accounting firm EY. Phoenicia Real Estate Holdings XI LLC assumed the title through a deed in lieu of foreclosure. The transaction was valued at $57.8 million.
**Parkmerced Apartments Placed Under Receivership**
A San Francisco judge has approved the lenders’ request to place the 3,165-unit Parkmerced apartment complex under the control of receiver Douglas Wilson Cos., according to the *San Francisco Business Times*. This decision follows the default of Parkmerced’s owner, Maximus Real Estate Partners, on a $1.5-billion loan backed by the property. The debt remained unpaid upon its maturity in December 2024.
**Westfield Trumbull Mall Moves to Special Servicing**
Westfield Trumbull, a superregional mall in Trumbull, CT, has transferred to special servicing after failing to meet its March 2025 maturity date. The mall’s revenue has remained relatively stable since 2021 but has struggled to meet underwriting expectations, with 2023 net cash flow falling 18% below initial projections. Occupancy remains above 90%. In late 2022, former owner Unibail-Rodamco-Westfield sold Westfield Trumbull along with Westfield South Shore in Long Island for a combined $196 million.
**New Jersey Office Portfolio Enters Special Servicing**
Signature Office Portfolio II, backed by three office properties in Central New Jersey, has transferred to special servicing due to delinquency, according to Morningstar Credit. The loan, valued at $70.8 million, represents 7.8% of the MSC 2021-L7 deal. The largest tenant, Regeneron Pharmaceuticals, which occupies 15% of the total space, has not renewed its lease ahead of its August 2025 expiration. This triggered a required deposit of $162,700 per month, which the borrower has indicated it lacks the cash flow to cover, leading to a request for loan modification. Occupancy declined to 68% as of December 2024, down from 92% at issuance.
**Industry RiNo Station Loan Transfers to Special Servicing**
Updated remittance data shows that the $60-million loan for Industry RiNo Station in Denver has moved to special servicing, Morningstar Credit reported. Loan payments are 60 days delinquent, though the borrower claims the funds are stuck in a lockbox and not transferring as expected. The collateral is a 177,697-square-foot office complex, where occupancy fell from 95% at issuance to 75% in September 2024. The looming lease expiration of OneTrust, the building’s largest tenant (21% of total space), in July adds to concerns.
**Colonnade Corporate Center Faces Default in Birmingham**
Colonnade Corporate Center, a suburban office property in Birmingham, AL, has transferred to special servicing due to a monetary term default, according to Morningstar Credit. The $80.9-million loan is tied to the property, which saw its occupancy drop from 92% at issuance to 78% as of September 2024 after the departure of Cadence Bank, a tenant occupying 14% of the space. The debt service coverage ratio (DSCR) had fallen to 1.11x through September 2024.
### Clarification
Morningstar Credit initially cited “monetary term default” as the reason for Esplanade I’s transfer to special servicing. However, the firm has since clarified that the special servicer reported “imminent monetary default” as the cause for the Downers Grove, IL office property’s transfer.
