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**Return to Lender: Week of February 12, 2026**
Here is a summary of recent notable commercial real estate developments involving distressed assets, foreclosures, and special servicing transfers around the United States.
– **Greenway Plaza, Houston, TX**
Greenway Plaza, a 16-property portfolio of office, retail, and parking assets in Houston, is under contract through a receivership sale. The transaction, expected to close in March, will include assumption of the $416.2 million loan (GSMS 2017-GPTX) and a maturity extension. The loan has been in special servicing since it missed its maturity in July 2022. Cash flow remains well below the originally underwritten levels, though the property was appraised at $438 million in 2024.
– **25 W. 45th Street, New York, NY**
Wells Fargo has foreclosed on this Midtown Manhattan office property after emerging as the highest bidder at a recent auction with a purchase price of $45.1 million. The loan transferred to special servicing in early 2024 after it defaulted on its November 2023 maturity. The building’s occupancy rate has stayed below 80% since WeWork vacated the premises in 2021.
– **1155 Market Street, San Francisco, CA**
The $48 million loan tied to the bottom eight floors of this San Francisco office property (15.9% of COMM 2016-CR28) was taken over by the trust at a foreclosure hearing in late January. The loan entered special servicing in March 2024 when the City of San Francisco, the sole tenant, vacated the premises.
– **Carrollton Gateway, Carrollton, TX**
Hilco Global is managing the bankruptcy sale of this 11.2-acre mixed-use development site at 2441 N. Broadway Street. The property, consisting of four tracts, has zoning potential for high-density residential, hospitality and office development—ranging from a 6-story residential building with ground-floor retail to a 20-story tower. Bids are due by February 26.
– **1133 Connecticut Ave. NW, Washington, D.C.**
This 184,000-square-foot office property is scheduled for foreclosure auction on March 12 at Alex Cooper Auctioneer’s office in D.C. The owners—a joint venture between Lerner Enterprises and the Lenkin Company—owe $36.4 million on a $43 million loan originated in 2007 and refinanced in 2015. The New York State Teachers Retirement System holds the loan.
– **Saks Fifth Avenue, Manhattan, NY**
The $1.3 billion loan (SFAVE 2015-5AVE) secured by Saks’ flagship Manhattan store has entered special servicing following Saks Global’s recent bankruptcy filing. While impacts on the property and loan remain unclear, the retailer reportedly arranged $1.8 billion in financing which includes $1.5 billion of debtor-in-possession financing backed by leasehold interest in its flagship store.
– **181 W. Madison, Chicago, IL**
This $240 million loan (JPMCC 2020-LOOP & multiple conduits) has reverted to special servicing due to a projected negative cash flow for 2026. Morningstar Credit cited Northern Trust’s downsizing and a rent-free period starting January 1 as key contributors. The borrower has declined to inject capital to bridge the funding gap. The loan was previously in special servicing from 2021 to 2023 after the original owner declared bankruptcy.
– **U.S. Steel Tower, Pittsburgh, PA**
Downtown Pittsburgh’s largest office building has been placed on a watchlist for a $200 million loan scheduled to mature June 1. The tower, owned by an affiliate of 601W Companies, has a 2026 assessed value of $152 million—24% below the mortgage balance. Despite the valuation shortfall, the loan remains current.
These developments reflect ongoing challenges in the commercial real estate sector, particularly among office properties affected by changing work patterns and rising vacancies.
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