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**Return to Lender: Week of Nov. 24, 2025**
Several notable distressed real estate transactions and legal proceedings have taken place across the country this week:
**Mission Point Health Care Nursing Homes Sold**
The last seven nursing homes operating under the Mission Point Health Care name have been sold to an investment group affiliated with the Villa nursing home chain. Michael Flanagan, the court-appointed receiver overseeing Mission Point’s operations since February, confirmed the sale. The transaction involved a nominal purchase price of $10 along with the assumption of millions in liabilities. At the time a receiver took over in early 2023, the troubled nursing home chain reportedly owed close to $5 million in unpaid rent. One of the eight facilities involved has since been shut down.
**Amherst Apartment Complex Sells for $10.8 Million**
An apartment community in Amherst, New York, has been sold for $10.8 million shortly after foreclosure proceedings were initiated. Lockwood Villas Holdings LLC, led by developer Anthony Cutaia, sold the property located at 2493-2497 Sweethome Road to 2493 Sweethome LLC, an affiliate of Adco Properties based in Williamsville, NY.
**Waterfall Asset Management Moves to Seize Stake in Manhattan Condo Tower**
Waterfall Asset Management is pursuing legal action to seize Rudy Gabsi’s stake in a Manhattan condo development. The property in question—611 W. 56th Street—is a 35-story upscale condominium tower near Hell’s Kitchen. Gabsi, the former head of Tel Aviv’s Leny Group, is accused of defaulting on a $92.1 million loan tied to the development. That amount has grown to $93.4 million including accrued interest and legal fees.
**Foreclosure Looms Over Miami Retail Properties**
A foreclosure lawsuit has been filed against a group of retail properties in Miami’s Allapattah neighborhood, which are known for their prominent street art murals. City National Bank of Florida has sued Artwood Projects LLC and Kailani Properties LLC, along with guarantors Amalfi Gayosso and Abelardo Monroy Medrano. The foreclosure action—valued at $7.5 million—covers over 21,000 square feet of retail space across multiple addresses on Northwest Seventh Avenue and 34th Street.
**Receiver Appointed for Lofts at OPOP in Downtown St. Louis**
St. Louis Circuit Court Judge Joan Moriarty has appointed M. Shapiro Management Co. LLC as receiver for the Lofts at OPOP, located at 911 Locust Street in downtown St. Louis. Fannie Mae filed a lawsuit in October against property owner Strategic Properties of North America (SPNA), claiming SPNA has defaulted on a $6.2 million loan originally issued in 2017. The remaining balance is currently $5.92 million.
**Navy League Building Moves to Special Servicing**
The Navy League Building in Arlington, Virginia—part of the MSBAM 2016-C28 pool—has been transferred to special servicing ahead of its December 2025 loan maturity. Originally valued at $55.4 million, the property has experienced prolonged occupancy and revenue struggles, with a debt service coverage ratio (DSCR) that has remained below breakeven since 2021. Although occupancy improved to 75% as of June 2025, financial performance remains challenged.
**625 North Michigan Avenue in Chicago Faces Financial Distress**
The office portion of 625 North Michigan Avenue in Chicago, which holds a $50.6 million loan (6.9% of CF 2019-CF1), has also been transferred to special servicing due to sluggish cash flows. Net cash flow for 2024 is 43% below initial underwriting expectations. Occupancy has dropped from 92% at issuance to 64% as of mid-2025. Meanwhile, the property’s retail component—financed under a separate $61 million loan—was returned to the lender via deed-in-lieu of foreclosure earlier this year.
These developments highlight ongoing financial pressure in various corners of the commercial and residential real estate markets across the U.S.
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