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**Return to Lender: Week of December 18, 2025**
RBC Real Estate Capital Corp. has offloaded non-performing debt tied to 66 San Francisco apartment buildings, positioning one of the city’s sizable multifamily portfolios for a change in ownership. The Canadian lender sold a $570 million loan backed by the properties to an affiliate of Revere Housing, for an undisclosed amount. Revere Housing, launched earlier this year by San Francisco-based Hamilton Zanze, is focused on targeting “dislocated” real estate and related loans in high-demand, rent-controlled California markets.
In other real estate finance developments:
**Orion Office Portfolio**
The Orion Office Portfolio, with a loan balance of $355 million under the WFCM 2022-ONL securitization, has entered special servicing due to what the servicer describes as an “imminent monetary default.” Despite this, the loan remains current through the December 2025 payment. A proposal to extend the February 2027 maturity has been submitted by the borrower. The 19-property office portfolio was fully leased through most of the loan term, though occupancy dropped to 91% as of September 2025.
**Penn Square Mall**
A $310 million loan tied to Oklahoma City’s Penn Square Mall has moved into special servicing. The loan, part of MSBAM 2019-C29, MSBAM 2016-C28, and MSC 2016-PSQ, transferred following the borrower’s inability to secure refinancing ahead of its January 2026 maturity. Net cash flow has been underperforming since 2020, coming in 18% below underwritten projections for 2024.
**Williamsburg Premium Outlets**
Another mall-backed loan, this one for Williamsburg Premium Outlets in Virginia, has entered special servicing. The $185 million loan, spread across multiple conduits, has suffered from persistent occupancy issues, which have hovered in the high 70% range since 2021—down from 95% at issuance. This has led to 2024 net cash flow falling 12% below projections.
**OZRE Leased Fee Portfolio**
The OZRE Leased Fee Portfolio, totaling $110.1 million and spread across multiple conduits in the CMBX.10 index, is now in special servicing. The East Coast industrial and office portfolio, which includes 58 properties, has seen occupancy decline from 90% at issuance to just 70% as of December 2024. Only 15 of the properties have been successfully re-leased to date.
**The Avenues – Jacksonville, FL**
The Avenues Mall in Jacksonville, Florida, has entered special servicing ahead of its February 2026 maturity. The $100 million loan (43% of COMM 2013-CR6) saw performance decline sharply following the May 2025 departure of anchor tenant Forever 21, which occupied 20% of the gross leasable area. Occupancy now stands at just 45% as of June 2025, down from 66% at the end of 2024. Net cash flow for 2024 was 20% below issuance levels. The loan was previously modified after entering special servicing in 2023 and extended by three years.
**Peachtree Mall – Columbus, GA**
Peachtree Mall’s $59 million loan has been transferred to special servicing as it approaches its December 2025 maturity. The loan, part of four securitizations (WFCM 2016-NXS6, WFCM 2017-RC1, SGCMS 2016-C5, and CSAIL 2016-C7) in the CMBX.10 index, has been underperforming throughout its term. The borrower is seeking an extension, as revenue and net cash flow have consistently failed to meet expectations, with 2024 net cash flow down 20% from the original underwriting.
These developments signal ongoing stress in commercial real estate, especially in the retail and office sectors, as loans continue to struggle with performance and upcoming maturities.
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