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**Return to Lender: Week of September 11, 2025**
Key developments in distressed real estate assets across major U.S. markets:
– **San Francisco, CA**
TMG Partners acquired the note on 149 New Montgomery for $21 million—representing 10.5% of CMBS deal COMM 2014-CR14—and subsequently took ownership of the property through a deed-in-lieu of foreclosure, according to Morningstar Credit. The 69,000-square-foot office building, located in San Francisco’s Financial District, had previously outperformed expectations into 2022 before a drop in occupancy led to a steep decline in net cash flow. The note had been in special servicing since June 2023. An appraisal earlier this year valued the property at $18.7 million.
– **San Antonio, TX**
Dallas-based Ashford Hospitality Trust Inc. is progressing toward acquisition of 145 Navarro, a downtown San Antonio building currently undergoing a transformation. A federal judge overseeing the bankruptcy case approved a $32 million all-cash deal between the current owner and Ashford. Originally planned to be converted into a luxury hotel under Marriott International’s Autograph Collection, the project will now proceed under Ashford’s direction.
– **Denver, CO**
The AmericInn by Wyndham Denver Airport, an 87-room hotel located at 7010 Tower Rd., has entered foreclosure. According to the Denver Business Journal, an LLC affiliated with Serene Investment Management of Berkeley, California, is the lender pursuing the action. The hotel is scheduled to be auctioned on December 18.
– **Gates, NY**
The loan on Rochester Tech Park— a large industrial and business complex off Elmgrove Road— became one of the ten largest newly delinquent CMBS loans in the country as of August, reported the Rochester Business Journal. Foreclosure efforts date back to April, when Wells Fargo Bank, acting as trustee for bondholders, filed a complaint in state Supreme Court. The outstanding mortgage balance is approximately $96.58 million.
– **Los Angeles, CA**
One California Plaza, which has $300 million in loan exposure across the CSMC 2017-CALI and CSAIL 2017-CX10 securitizations, has gone into receivership according to Morningstar Credit. The office property has underperformed since origination and was transferred to special servicing in September 2024 ahead of its scheduled maturity in November. Although a receiver is in place to stabilize the asset, Morningstar noted that foreclosure remains a possibility.
– **Tucson, AZ**
A court has granted the appointment of a receiver at Tucson Mall, backed by a $178.6 million loan included in BBUBS 2012-TFT. The loan, secured primarily by inline space at the shopping center, had previously been transferred to special servicing twice for maturity defaults. Listed for sale earlier this year, several offers were received but no successful transaction was completed.
– **Portland, OR**
A judge has denied a request to appoint a receiver for the Black Box Building located at 200 S.W. Market St., a move that favors owner John Russell in his efforts to retain the property. The Portland Business Journal reported that lender MetLife has filed a $63 million breach-of-contract lawsuit seeking judicial foreclosure and appointment of a rent-collecting receiver. The matter will proceed to trial unless a settlement is reached.
Stay tuned for weekly updates on distressed and transitioning properties across the nation.
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