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**Return to Lender: Week of October 23, 2025**
– A $418.5 million securitized loan backed by the Palisades Center Mall in West Nyack, NY has been resolved, leading to a nearly 60% loss to the CMBS trusts. The 2.2 million-square-foot property, developed in 1997 by a Pyramid Management Group affiliate, was sold for approximately $175.2 million. Trigild was the receiver and enlisted Spinoso Real Estate Group for leasing and management.
– The CMBS loan against a 43-property apartment portfolio previously acquired by Chetrit Group for $522 million in 2019 has been reduced from $384.8 million to $195.96 million. Thirteen properties were sold, and the 108-unit Vista Place Apartments in Russellville, AR, is currently listed for sale via auction. The student housing property is only 19.3% occupied and is marketed as a repositioning opportunity.
– A $45.1 million loan backed by the 1100 Superior Ave. office tower in Cleveland, OH was liquidated, resulting in a total loss to the CMBS trust, per Morningstar Credit. In special servicing since 2021 and REO since January 2023, the loss wiped out Classes G and H and partially wrote down Class F by $2.1 million.
– The 553,000-square-foot office building at 1650 Arch Street in Philadelphia, owned by 1650 Arch Investor LP, will be sold at public auction on November 5. The property is approximately 50% vacant and has been in receivership since July following a foreclosure complaint. The original $75.8 million loan now has a balance of $43 million. Colliers’ Carl Neilson is overseeing the sale.
– An Austin, TX retail center owned by World Class Holdings, located at 13376 N. U.S. Hwy. 183, is scheduled for auction on November 5. It was most recently appraised at $12.1 million. Also slated for auction is the site of a downtown Austin IHOP at 707 E. Cesar Chavez St., appraised at $26.7 million.
– The KeyBank Building at 88 E. Broad Street in downtown Columbus, OH is currently for sale with a 29% occupancy rate, according to Columbus Business First. Sold for $12 million in 2022, the property has suffered from maintenance issues and high vacancy, resulting in receivership in 2024. The current owner owes nearly $11.5 million as of January 2025.
– Five apartment complexes and three commercial buildings in Miami’s Little Havana are at risk of seizure in a $4.6 million foreclosure lawsuit filed by CNP XXXV Ventures. The action targets VQ Everglades entities and loan guarantor Victor Antonio Quezada Rijo. The loans are cross-collateralized, meaning default on one triggers default on all.
– Los Angeles-based Hertz Investment Group may lose its largest asset, the 1.6 million-square-foot Gateway Center in Pittsburgh, due to potential foreclosure. The loan, with an outstanding balance of over $84 million, entered special servicing in 2022.
– The $180 million loan for 261 Fifth Avenue in Manhattan has been transferred to special servicing after not being paid off upon its September 2025 maturity. Despite remaining current through its term, this 442,000-square-foot office property now faces distress.
– Millennium Corporate Park in Redmond, WA, backed by a $105 million loan, has also transferred to special servicing ahead of its January 2026 maturity. Microsoft, occupying 89% of the campus, had previously announced plans to sublease its space but has since removed those listings. The rest of the six-building complex remains vacant after tenant departures.
– Peachtree Office Towers in Atlanta’s CBD is in special servicing following two missed payments. Backed by a $64.8 million loan, the 620,391-square-foot building’s occupancy was last reported at 69% as of June 2025, with another 25% of leased space expiring by mid-2026.
These stories reflect a diverse array of real estate assets facing loan distress, special servicing, and foreclosure across the country.
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