Return to Lender: Week of Dec. 11, 2025

Barchart·12/11/2025 12:08:16

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A 22-story office tower in downtown Denver that had been home to Xcel Energy’s local headquarters returned to its lender this week, according to public records. The Denver Business Journal reported that Beacon Capital Partners had owned the 1800 Larimer building since 2022. However, Blackstone However, Blackstone Mortgage Trust took possession of the property this week, satisfying the requirements of a 2022 deed of trust between Beacon and Blackstone. After Beacon bought the property for $291 million, it used the building to borrow $190.6 million from Blackstone that same year. The loan was set to mature in March, with the borrower retaining the right to extend for a year until March 2027. The property had not entered any foreclosure proceeding.

An office complex in San Ramon, CA was seized by its lender in another sign of trouble in the East Bay suburban office markets, the San Francisco Business Times reported. The 312,000-square-foot Plaza San Ramon at 2000 and 2010 Crow Canyon Pl. went back to its lender via a foreclosure Dec. 4. Texas-based C-III Capital Partners, which acquired the complex for $72.2 million in 2018, defaulted in July on $59.2 million in unpaid mortgage debt backed by the two-building property. The foreclosure, first reported by the Mercury News, valued the property at less than half of what the property was worth seven years ago at $30 million. Wells Fargo subsiduary Redus Properties foreclosed on Plaza Saan Ramon.

The 10-story Preston Plaza, a Dallas office tower that hit the auction block last month, is in the process of changing hands after a New York investor recently placed a winning bid on the 6.3-acre property, according to the Dallas Business Journal. Currently about 35% leased, the property will soon be owned by developer Arthur Zeckendorf and his AZ Family Partners. Zeckendorf placed the winning bid on the auction that took place Nov. 10-12. Bids to buy the tower began at $2.25 million, although the winning bid amount was not shared.

Franklin BSP Realty Trust has taken Tides on Westcreek, a 269-unit apartment property in Fort Worth, through foreclosure, Trepp reported. The property, at 6776 Westcreek Dr., was owned by Tides Equities, which bought it in 2022. Franklin BSP provided $32.82 million of financing, funding $27.76 million and held back the remainder to cover the cost of upgrades. The loan matured in June 2024, but included options allowing for its extension. The first extension option evidently was exercised, but for additional extensions to be put in place, Tides would have had to pay a fee and purchase a new interest-rate cap.

The Washington Business Journal reported that a Chevy Chase apartment building was recently sold at a competitive foreclosure auction. The 127-unit apartment building at 5225 Connecticut Ave. NW, known as The Huntington, was acquired by Annapolis investor-developer Mentis Capital Partners for $13.9 million, or more than was owed to the noteholder by the former property owners. According to a condo foreclosure notice filed in October, DC-based American Housing affiliate 5225 Connecticut Owner LLC, along with WE 5225 Connecticut Ave LLC, an entity controlled by a syndicate of investors, owed $11.7 million on a $10.6-million loan held by an affiliate of New York commercial real estate lender Maxim Credit Group.

Two King of Prussia, PA hotels are on the market after Buccini Pollin Group surrendered the properties to its debtholders earlier this year, the Philadelphia Business Journal reported. The Fairfield Inn Philadelphia Valley Forge/King of Prussia and the Crowne Plaza Philadelphia King of Prussia have been listed for sale by JLL’s Hotels & Hospitality Group with the option to be purchased together or individually. No asking price is included in the listing.

Westroads Mall ($77.0 million | COMM 2012-LTRT) moved to special servicing after missing its extended maturity date in October 2025, according to Morningstar Credit. Based on an appraisal obtained in 2022 during a prior stint in special servicing, the loan on the Omaha retail property is levered to just 52%.

McKnight Realty Partners’ Heinz 57 Center building in downtown Pittsburgh has been moved into special servicing and is on the brink of a deadline for potential loan default, the Pittsburgh Business Times reported. With a balance slightly over $62.6 million, the loan was due to mature this past Saturday.