**Return to Lender: Week of October 2, 2025**
– Twenty years after its origination, the Phillips Lighting loan, totaling $27.6 million (WBCMT 2005-C21 | CMBX.1), has been liquidated at a total loss. According to Morningstar Credit, the Franklin Township, NJ office building had been REO (real estate owned) since 2022 after entering special servicing when Phillips Lighting, the sole tenant, vacated the premises at the end of 2021.
– The tallest tower in Bloomington, Minnesota’s Normandale Lake Office Park has been sold for $4 million, a steep markdown for this Class A trophy asset. Leasehold rights to the 467,000-square-foot property known as 8500 Tower were acquired by a partnership that includes Namdar Realty of Great Neck, NY. The sale price equates to just over $8.50 per square foot — representing a 94% decrease from what the lender, affiliated with Columbia Pacific Advisors in Seattle, paid in a foreclosure auction last year.
– A foreclosure sale has taken place at 122 S. Main St. in Memphis, the site where developer Tom Intrator had proposed a Dream Hotel that never materialized. According to the Memphis Business Journal, JG Funding Corp., based in Staten Island, acquired the property for $2 million at a courthouse auction held on September 19. The company served as the financier for the original $99.3 million Dream Hotel project.
– The former Mosque of the El Jebel Shrine in downtown Denver may soon be sold to satisfy creditor claims. The Denver Business Journal reported that a Denver District Court judge has cleared the foreclosed property for auction to help recoup value for the lender. Cordes & Company LLP, which has served as the receiver since May, can now proceed with an auction plan. The reserve price for the historic property is around $9 million.
– In Fort Lauderdale, an automotive warehouse located at 928-932 N.W. First St. is the subject of a $2.07 million foreclosure lawsuit. Newtek Bank filed the complaint against Force Majeure I LLC on September 25. The property spans 12,732 square feet and, according to court filings, mortgage payments ceased on December 1, 2024. The borrower reportedly owes $2.07 million in principal, interest, and fees.
– The Freehand Los Angeles Hotel, situated at 416 W. 8th St., is facing foreclosure after defaulting on $71 million of debt. The borrower, connected to Generator Hostels, failed to meet its obligations to lender Trimont. Queensgate Investments, a London-based private equity firm and owner of Generator, originally acquired the Freehand Hotels brand from Sydell Group for $400 million six years ago.
– Morningstar Credit reported that the $52.4 million loan backing the Fairways At Lowry apartment complex (18.5% of FREMF 2021-KF101) has transferred to special servicing. The 450-unit property is located in Aurora, Colorado. The borrower appears to have implemented an aggressive eviction campaign in early 2024 in efforts to improve tenancy, which instead led to lower occupancy and increased turnover expenses.
– The New Center One Building in Detroit, which had a loan balance of $31 million (JPMBB 2015-C33 & JPMBB 2015-C32 | CMBX.9), has also been transferred to special servicing due to a failure to pay off at its September maturity. Morningstar reported strong historical performance, with net cash flow in 2024 reaching 24% above the originally underwritten amount. The largest tenant is the Henry Ford Medical Center, occupying 29% of rentable space, with a lease expiring in 2027.
