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**Return to Lender: Week of January 15, 2026**
A series of prominent commercial properties across the U.S. are facing financial distress, with several being transferred to lenders or entering special servicing. Here’s a round-up of significant developments:
– **Radford Studio Center, Los Angeles, CA**
Hackman Capital Partners is reportedly preparing to transfer ownership of the historic Radford Studio Center to its lenders after defaulting on a $1.1 billion mortgage, according to Bloomberg News. Hackman, the largest independent studio owner globally, had previously paused debt restructuring negotiations for the 55-acre facility and is expected to hand the property over to Goldman Sachs. Hackman confirmed to Variety that it is working with banks on a resolution.
– **Gravity I Apartments, Columbus, OH**
The Gravity I development in the Franklinton neighborhood of Columbus has been transferred to its lender, Merchants Bank of Indiana. Developer Brett Kaufman’s first phase of the $68 million Gravity development included around 230 apartments at 480 W. Broad Street. The transfer marks another major distress move in the multifamily sector.
– **1700 Market Street, Philadelphia, PA**
The office tower at 1700 Market Street is up for sale as its foreclosure process winds down. The 32-story, 850,723-square-foot building, owned by San Francisco-based Shorenstein, has struggled financially in recent years. It carries a $186.7 million CMBS loan, initially originated by Barclays in January 2022. The loan was transferred to special servicing in late 2023. Cushman & Wakefield, acting as receiver, is handling the property’s sale.
– **14 East Washington Street, Orlando, FL**
A six-story building at 14 E. Washington Street in downtown Orlando is back on the market after emerging from a two-year bankruptcy process in 2024. The 42,088-square-foot mixed-use building, featuring ground-level retail, is currently 53% leased. Marcus & Millichap is leading the marketing efforts, with Wyatt Shuford, David Vaughan, and Ray Turchi representing the seller.
– **1384 Broadway, New York, NY**
The office building at 1384 Broadway in Midtown Manhattan has entered special servicing. Backed by an $88 million loan representing 8.7% of the CD 2017-CD3 deal, the property saw its debt service coverage ratio (DSCR) fall below breakeven. Occupancy and revenue have steadily declined, while operating expenses have increased by more than 25% since issuance. The loan matures in February 2027.
– **Intercontinental Kansas City Hotel, Kansas City, MO**
Struggling to meet net cash flow expectations since inception, the 366-room Intercontinental Kansas City Hotel has moved to special servicing ahead of its $62.1 million loan’s maturity in February 2026. The Kansas City Business Journal noted that the property was being marketed in late 2025, and its Intercontinental brand affiliation is expected to expire in December 2025. The loan is part of COMM 2016-DC2 and DBJPM 2016-C3 deals.
– **Residence Inn by Marriott LAX, Los Angeles, CA**
The 231-room Residence Inn by Marriott LAX is now in special servicing due to imminent default. Backed by a $45 million loan, the hotel is located half a mile from the Los Angeles International Airport and near SoFi Stadium and the Intuit Dome. While it performed well early in the loan term, cash flow began declining pre-pandemic and has not yet recovered.
These developments reflect ongoing challenges in the commercial real estate sector as properties continue to feel the ripple effects of rising interest rates, changing work patterns, and post-pandemic recovery struggles.
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