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**Return to Lender: Week of January 22, 2026**
**U.S. Bank Acquires Midtown Manhattan Tower at Foreclosure Auction**
U.S. Bank has taken possession of the 31-story office tower at 750 Lexington Ave. in Midtown Manhattan after winning a foreclosure auction with a nominal bid of $1,000. The auction was ordered by a New York state court to repay a $155.9 million loan. The property, owned by Cohen Brothers Realty, has been in special servicing since October 2023.
**West Chelsea Office Project Acquired in Bankruptcy Auction**
A stalled office development at 541 W. 21st St. in Manhattan’s West Chelsea neighborhood has been acquired by G4 Capital Partners and SME Capital Ventures for $46.2 million via bankruptcy auction. Originally backed by a $56 million mortgage from G4 Capital in 2019, and an additional $5 million from mezzanine lender SME Capital, the pandemic-era project—intended to convert a prewar arts storage warehouse into modern office space—ran out of funding before completion.
**Senior Housing in Buffalo Faces Foreclosure**
The New York State Comptroller’s office has initiated foreclosure proceedings against a senior apartment community in North Buffalo, citing a loan default exceeding $4.6 million in construction financing. The complaint, filed January 12 in state Supreme Court, names Jill Joseph Tower LLC, Jill Joseph Housing Development Fund Corp., and developer Michael Joseph as defendants.
**$350M San Francisco Office Tower Loan Heading for Sale**
Lenders behind 225 Bush Street in downtown San Francisco are preparing to sell a $350 million nonperforming loan. The note, associated with owner Kylli’s default in November 2024, is being managed by a special servicer who is reportedly in talks with JLL to bring the debt to market.
**Solano Mall Loan Enters Special Servicing**
The $98.3 million loan on the Solano Mall in Fairfield, CA, is now in special servicing for imminent monetary default. Originally maturing in 2022, the loan was extended to October 2026 following its purchase by Spinoso Real Estate Group in 2023. Net cash flow from the mall has fallen significantly, with 2024 levels down to $5.4 million from $13.9 million at issuance.
**Pinnacle II Office Loan in Burbank Defaults After Tenant Vacancy**
The $87 million CMBS loan secured by the Pinnacle II office property in Burbank, CA, has entered special servicing for imminent monetary default. Scheduled to mature in June 2026, the property has remained nearly 100% vacant since Warner Bros.—the sole tenant—vacated ahead of its lease expiration in October 2022. Since 2023, net cash flow has remained negative.
**Park Place at Florham Park in Special Servicing**
Park Place at Florham Park, a four-building office park in Florham Park, NJ, has been transferred to special servicing after its cash flow dropped below breakeven. The $62.5 million loan backing the property now faces challenges, following the recent loss of a 25,000-square-foot tenant. The borrower has indicated an inability to cover funding shortfalls. The loan is set to mature in February 2028.
—End of Report—
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