Return to Lender: Week of June 25, 2026

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The downtown Oakland home of the Clorox Co. was seized by its lender in a foreclosure, but a former owner will be kept on as an operating partner. The San Francisco Business Times reported that Heitman Capital Management took over ownership of the 535,000-square-foot building at 1221 Broadway and part of the City Center mixed-use complex from its owners — private equity firm KKR and real estate developer TMG Partners — in a foreclosure filed with the Alameda County Assessor’s Office on June 16. TMG will stay on as property and asset managers of the office tower, with plans to reposition the property with upgrades and renovations to attract new tenants. KKR and TMG bought the tower in 2019 for $255.34 million, roughly $490 per square foot, which at the time was one of the largest commercial real estate transactions in Oakland’s history. KKR took out a $239.6-million loan from Heitman at the time.

Two office buildings in downtown Miami are slated for auction after their owners lost a $65.7 million foreclosure judgment, the South Florida Business Journal reported. Miami-Dade County Circuit Court Judge Joseph Perkins granted the stipulated foreclosure judgment in favor of Atlanta-based lender AFF IV 200 Miami LLC on June 11, and against defendants SRCTD 44-200 LLC and FS Equity Investments II LLC. It was based on a mortgage with $41.1 million in principal outstanding, plus interest and fees. The 12-story, 150,530-square-foot building at 200 S.E. First St. and the 25-story, 172,292-square-foot building at 44 W. Flagler St. – also known as Courthouse Tower – are both slated for online auction July 20.

The Hilco Global Real Estate Practice, in conjunction with Onyx Asset Advisors, announced July 6, 2026, as the bid deadline for the bankruptcy sale of two recently constructed, income-producing commercial properties located near Morgantown, WV. The assets include a Class A office building and a fully occupied retail center anchored by nationally recognized retailers, both situated within the West Ridge Development commercial hub. Situated along I-79, 3000 Swiss Pine Way consists of a 43,287-square-foot office building with multiple tenants, and 16-96 Colliers Crossing is a 136,865-square-foot, six-store shopping center.

The owner of the former Mosque of the El Jebel Shrine in downtown Denver has avoided another auction despite a judge ruling in September that the property should be sold to recoup value for the lender, reported the Denver Business Journal. Instead, the latest court filings indicate that the owner and lender are working on a forbearance agreement that would resolve the bankruptcy and foreclosure proceeding differently. Robert Lubin, who owns the property, said he and his development team have been paying the loan on the property down, making the lender willing to negotiate.

425 Eye Street ($102.2 million | GSMS 2021-GSA3 & BMARK 2022-B32) moved to special servicing for “imminent monetary default,” reported Morningstar Credit. The Washington, DC office building has a large exposure to GSA tenancy, including the majority (64%) of the space expiring this month.

The Simon Premium Outlets CMBS loan ($83.9 million | MSBAM 2016-C30, WFCM 2016-BNK1 & MSBAM 2016-C31 | CMBX.10) moved to special servicing after missing its June 2026 maturity date, according to Morningstar Credit. The loan is secured by three outlet centers in tertiary markets in Massachusetts, South Carolina and Georgia. The properties had performed well until the pandemic but have never reached those levels of cash flow again. Because of the low leverage at issuance, cash flow remains breakeven, making an extension likely.