Return to Lender: Week of Feb. 26, 2026

The 220,000-square-foot 345 Seventh Ave. office building in Manhattan’s Penn Plaza area is being offered for sale through a uniform commercial code foreclosure, Trepp reported. Benefit Street Partners provided financing in 2021 to fund the property’s $107-million purchase by a venture of Empire Capital Holdings and an affiliate of Namdar Realty Group of Great Neck, NY. The venture, which three years later was preparing to turn the property over to Benefit Street, sold it instead to a venture led by Kohan Retail Investment Group, also of Great Neck, at the start of last year for $73 million. At that point, Benefit Street filed a UCC financing statement with the city, effectively protecting its position as senior creditor and giving it a claim to the building. A March 13 UCC Article 9 auction has been scheduled.

The Renaissance Baltimore Harborplace Hotel is headed to auction, just a few months after entering foreclosure at the end of 2025, according to the Baltimore Business Journal. The 622-key Inner Harbor hotel at 202 E. Pratt St. is scheduled to be auctioned March 11 on the steps of the Clarence M. Mitchell Courthouse downtown, according to Atlantic Auctions, which is handling the sale. The auction comes after the hotel’s owners defaulted on a $71-million loan in November.

The Rosetree complex, a 268,000-square-foot office property at 1400 N. Providence Road in Media, PA, is the subject of a foreclosure action, the Philadelphia Business Journal reported. The property was sent into receivership after its owner, an entity affiliated with West Conshohocken, PA-based Keystone, failed to pay the balance of a $45.5-million CMBS loan when it matured in September. The firm owed $39.4 million as of Oct. 23 to satisfy the terms of the loan, special servicer CWCapital said in its foreclosure complaint, and interest continues to accrue.

The Austin Business Journal reported that a bankruptcy case for the World Class Holdings entity that owns the land under the downtown Austin IHOP restaurant has been dismissed, possibly opening up a pathway back to foreclosure of the property. Judge Christopher Bradley on Feb. 18 dismissed the Chapter 11 bankruptcy case for WC 707 Cesar Chavez LLC, the World Class entity that owns the IHOP property. The 0.8-acre lot has an appraised value of $26.8 million, according to Travis Central Appraisal District, and its location at the north end of the heavily developed Rainey Street District means plenty of redevelopment potential, according to the Business Journal.

The Riley ($53.8 million | 6.7% of BBCMS 2024-C26) has transferred to special servicing. Morningstar Credit reported that although the servicer provided no details, prior commentary noted that a cash trap has been sprung for a number of reasons, including “tax exemption.” The offering documents note that the Richardson, TX multifamily property participates in the Garland Housing Finance Corporation program, which allows the property to be exempt from real estate taxes if it meets certain conditions, and requires mandatory prepayments if it does not qualify for or loses that exemption.

Spectra Energy Headquarters ($48.3 million | 13.55% of JPMBB 201-C255 | CMBX.8) moved to special servicing in advance of the lease ending on the dark space at the property, reported Morningstar Credit. The Houston office was fully leased to Spectra Energy (which was acquired by Enbridge), but the tenant left the space dark a couple years ago while on the hook for the lease until April 2026.

The Singer Bronx Multifamily Portfolio ($39.0 million | 4.4% of BBCMS 2022-C14 | CMBX.16) moved to special servicing this month for payment default after several months of being delinquent, Morningstar Credit reported. There is no context provided, and the last full set of financials was relatively healthy as of the end of 2024. However, the servicer commentary points to a number of underlying issues. It appears a cash trap was sprung at some point, insurance was force-placed and the borrower is delinquent on real estate taxes.

Morningstar Credit reported that the CMBS loan on the Norfolk Waterside Marriott ($33.5 million | 5.0% of BANK5-5YR2) moved to special servicing for imminent default. Performance at the 407-key hotel in Norfolk, VA is unclear: although financial reporting shows a DSCR of just 0.06x for the T-12 ending September 2025, servicer commentary states a 1.23x DSCR for the same timeframe. There was a cash trap sprung earlier because the loan did not maintain a 10% debt yield.