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**Return to Lender: Week of January 8, 2026**
**Lone Star Funds Acquires San Francisco Office Tower Debt**
Lone Star Funds has acquired the debt of a San Francisco office tower formerly owned by WeWork, setting the stage for a potential foreclosure takeover. According to the San Francisco Business Times, a Lone Star affiliate purchased the nonperforming $240 million loan backed by 600 California Street for nearly $130 million — a deep discount compared to the $322.8 million WeWork Capital Advisors paid for the building in 2019.
**GSK’s Former Headquarters Sells at Steep Discount**
The former North American headquarters of pharmaceutical giant GSK in the Philadelphia area has been sold at a significant loss. The Philadelphia Business Journal reported that the building sold for $52 million — 26% below its appraised value of $70.2 million in September 2025 and 60% below its 2018 price. The building has remained vacant since GSK vacated the property in 2022. The sale follows a 2021 foreclosure complaint filed by Rialto Capital Management against Korea Investment Management.
**Federal Gateway Sold for a Third of Its Assessed Value**
WC Smith has sold Federal Gateway, its headquarters at 1100 New Jersey Avenue SE in Washington, D.C.’s Navy Yard, in a short sale at just a third of its assessed value. According to the Washington Business Journal, an affiliate of Onward Investors purchased the building for $43 million, well below its 2025 assessed value of $132 million. This marks Onward’s second acquisition in the neighborhood.
**Harwood No. 1 in Dallas Changes Hands**
Cawley Partners has acquired Harwood No. 1, the first office building developed in Dallas’ Harwood District. The 106,000-square-foot, seven-story tower, originally built in 1982 by Harwood International Inc., is currently 50% leased. While the sale price was not disclosed, the property was last assessed at $25 million by the Dallas Central Appraisal District. First United Bank reclaimed ownership in a November foreclosure auction with a winning bid of $27.2 million.
**Commonwealth Building in Portland Sells for $6.5 Million**
The Commonwealth Building, located at 421 S.W. Sixth Avenue in downtown Portland, OR, has sold for $6.5 million — approximately $29 per square foot — according to the Portland Business Journal. The building previously sold for $69 million in 2016. The buyer is listed as Commonwealth Portland Building LLC, and Newmark’s Nick Kucha represented the seller in the transaction.
**Loan on One New York Plaza Moves to Special Servicing**
The $835 million securitized loan on One New York Plaza, a 2.5-million-square-foot office building in Manhattan’s Financial District owned by Brookfield, has transferred to special servicing. Morningstar Credit reports that the transfer occurred ahead of the loan’s final maturity, occurring after all three contractual extension options had been used. Brookfield is seeking an extension amid declining occupancy and cash flow at the property.
**Lincolnwood Town Center Sells for $12.3 Million**
Lincolnwood Town Center, a regional mall in Lincolnwood, Illinois, has been sold for $12.3 million. The property was previously linked to a $44.5 million loan that made up 46.9% of the JPMCC 2014-C20 securitized loan pool and was part of the CMBX.8 index. Morningstar Credit noted that the mall became REO (real estate owned) in August 2021 after being transferred to special servicing in May 2020 due to pandemic-related stress.
**Pittsburgh’s Bank Tower in Loan Default**
The Bank Tower, a 16-story office building in downtown Pittsburgh, is now in loan default. Built in 1902 as the headquarters of People’s Savings Bank, the property has faced tenant losses in recent years. The Pittsburgh Business Times reports that S&T Bank filed a complaint in Allegheny County Court on December 23, alleging that the owner, McKnight Bank Tower LLC (an affiliate of McKnight Realty Partners), failed to make payments on a debt of just over $5.99 million.
These transactions reflect the ongoing reshuffling of commercial real estate assets, particularly as economic pressures and post-pandemic workplace shifts continue to impact debt performance and property valuations nationwide.
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