Lending & Foreclosure
Verified Update
Filed
The owner of a Jamaica, Queens mixed-use building filed a second Chapter 11 case, reporting $14 million in assets and $12.6 million in liabilities, after its first case was dismissed with a 180-day refiling bar.
AZ 175th Street LLC, which owns a mixed-use building at 91-10/91-14 175th Street in Jamaica, Queens, filed a voluntary Chapter 11 petition in the Eastern District of New York on October 10, 2026 (Case No. 26-44763). The petition reports about $14 million in assets and $12.6 million in liabilities. It is the owner's second Chapter 11 case: the first, filed in May 2025 as a single-asset real estate case, was dismissed in October 2025 on the secured creditor's motion, and the order barred the debtor from filing again for 180 days.
$12.6 million in reported liabilities against $14 million in reported assets
Mixed-Use
Why it matters: A repeat filing by a single-asset owner whose first case ended in a consensual dismissal with a refiling bar shows how borrowers use the automatic stay to interrupt a lender's enforcement again once the bar expires. Lenders holding loans on small New York mixed-use and multifamily assets should expect a renewed bad-faith dismissal or stay-relief motion. The first case's history should strengthen that motion, but a second round still means more delay and more legal costs.
Oct 10, 2026
U.S. Bankruptcy Court, Eastern District of New York
Lending & Foreclosure
Verified Update
Ruling Issued
The Ninth Circuit BAP held old HUD loan documents barred lender Lenox Mortgage IX from recovering some of its $419,266.94 fee demand after a San Francisco assisted-living facility's bankruptcy sale.
On October 9, 2026, the Ninth Circuit Bankruptcy Appellate Panel ruled on a fee dispute that followed the bankruptcy sale of a San Francisco assisted-living and memory-care facility. Lender Lenox Mortgage IX LLC had demanded $419,266.94 in attorneys' fees on top of its payoff. The panel agreed with the bankruptcy court that the old HUD-era loan documents did not allow Lenox to recover fees from the earlier defaults and state-court litigation. It reversed as to the fees Lenox incurred in the bankruptcy case itself and the payoff fight, and it vacated the borrower's prevailing-party fee award for reconsideration.
$419,266.94 in disputed lender attorneys' fees on a $19.8 million payoff demand
Senior Living
Why it matters: The ruling is a warning to lenders holding older or acquired loan paper: whether fees can be added to the secured debt under Bankruptcy Code section 506(b) depends entirely on the exact wording of the documents. If the clause ties fee recovery to a court award or to foreclosure-sale proceeds, a lender that never got a court award and whose collateral was sold under section 363 instead of at foreclosure may recover nothing for years of accrued legal costs. California's reciprocal-fee statute can also turn a failed fee claim into a fee award against the lender.
Oct 9, 2026
U.S. Bankruptcy Appellate Panel of the Ninth Circuit (appeal from U.S. Bankruptcy Court, Northern District of California)
Lending & Foreclosure
Verified Update
Ruling Issued
The Ninth Circuit BAP upheld retroactive annulment of the automatic stay, validating Enterprise Bank's nine Laguna Beach foreclosure sales after bad-faith involuntary Chapter 11 petitions were filed minutes earlier.
On October 7, 2026, the Ninth Circuit Bankruptcy Appellate Panel affirmed a bankruptcy court order that retroactively annulled the automatic stay. The order validated nine nonjudicial foreclosure sales that Enterprise Bank and Trust held on October 15, 2025 for Laguna Beach properties owned by ten single-asset entities. Involuntary Chapter 11 petitions had been filed against the owners minutes before the sales began. A prospective bidder appealed, arguing all the sales should be re-noticed. The panel found no abuse of discretion, given the bankruptcy court's finding that the filings were made in bad faith.
Roughly $80 million first-lien debt on ten Laguna Beach properties
Why it matters: The ruling shows that a last-minute involuntary bankruptcy filed by related creditors to stop a foreclosure can be undone after the fact. That holds especially when the lender had no notice and already held stay relief from an earlier bankruptcy. It also tells foreclosure-sale bidders that sitting out an auction because they know of a bankruptcy filing, without telling the trustee, weakens any later claim that they were harmed.
Oct 7, 2026
U.S. Bankruptcy Appellate Panel of the Ninth Circuit (appeal from U.S. Bankruptcy Court, Central District of California)
Lending & Foreclosure
Verified Update
Filed
The owner of the 203-room Wellsworth Hotel in Southbridge, Massachusetts filed Chapter 11 one day before lender X-Caliber Rural Capital's foreclosure auctions on its $13.25 million loan.
Southbridge Associates LLC, which owns the 203-room Wellsworth Hotel and conference center complex at 14 Mechanic Street in Southbridge, Massachusetts, filed a Chapter 11 petition on October 6, 2026. The filing came one day before October 7 foreclosure auctions of the hotel site and the on-site power plant equipment that had been scheduled on behalf of lender X-Caliber Rural Capital, which made a $13.25 million loan on the property in 2022. A cash collateral motion was docketed on October 8, and an affiliate, Southbridge Associates II LLC, had already filed its own Chapter 11 case on September 21.
$13.25 million hotel loan
Hospitality
Why it matters: The case is a textbook eve-of-auction filing: the automatic stay generally freezes a mortgagee's sale the moment the petition is filed, shifting the fight from the auction block to the bankruptcy court's cash collateral and stay-relief hearings. Hotel lenders should note how quickly the cash collateral fight arrives, since room and event revenue is both the lender's collateral and the debtor's operating budget.
Oct 6, 2026
U.S. Bankruptcy Court, District of Massachusetts
Lending & Foreclosure
Verified Update
Filed
The single-asset owner of The Travis, a 354-unit apartment community near Frisco, filed Chapter 11 listing more than $50 million in debt, with ACORE, which financed the 2022 purchase, as a creditor.
Travis Property Owner LLC, a single-asset real estate entity that owns The Travis apartment community at 900 Gordon Heights Lane in Lakewood Village, Texas, filed a Chapter 11 petition minutes after midnight on October 6, 2026. Law360 reported that the debtor listed more than $50 million in debt, and the petition puts both assets and liabilities in the $50 million to $100 million range. Acore Capital Mortgage, L.P. appeared as a creditor the same day (a 2022 trade report says ACORE Capital financed the property's purchase with a $73.4 million loan), and a cash collateral motion and request for an expedited hearing were docketed on October 8.
More than $50 million in debt; $73.4 million acquisition loan (2022)
Multifamily
Why it matters: The Travis is a 2021-vintage Class A suburban Dallas-area property bought in mid-2022 with short-term, interest-only acquisition debt, a financing profile that leaves little room when the loan term runs out. The case will test how much room a single-asset debtor has against its secured lender: SARE debtors face a 90-day deadline to file a confirmable plan or start paying interest, and the petition itself forecasts nothing for unsecured creditors. Lenders and owners holding similar short-term debt from 2021-2022 should watch the cash collateral terms and any stay-relief motion.
Oct 6, 2026
U.S. Bankruptcy Court, Northern District of Texas
REIT & Securities
Verified Update
Filed
American Hospitality Properties REIT and REIT II filed Chapter 11 with 14 affiliates after their former manager settled SEC charges over an $86 million Regulation A hotel-fund offering.
American Hospitality Properties REIT, Inc. and American Hospitality Properties REIT II, Inc. filed Chapter 11 petitions on October 4, 2026 in the U.S. Bankruptcy Court for the Northern District of Texas, together with 14 other affiliated entities, bringing the jointly administered case to 16 debtors. The filing comes less than four months after the REITs' former external manager, Phoenix American Hospitality, LLC, settled SEC fraud charges tied to an $86 million Regulation A hotel-fund offering, and less than three weeks after investors filed a parallel securities class action over the same conduct. Alan Tantleff was named chief restructuring officer, with Vinson & Elkins LLP as bankruptcy counsel and FTI Consulting as financial advisor.
$86M underlying Regulation A fraud scheme; 16 jointly administered debtors
Why it matters: The filing shows how quickly SEC enforcement against a non-traded REIT's external manager can cascade into a full Chapter 11 of the REIT entities themselves, with retail investors who bought into the Regulation A offering now facing bankruptcy recovery alongside brand-franchisor creditors. Lenders, hotel brand companies, and investors in similarly structured non-traded REITs should treat a manager-level SEC settlement as an early warning sign of entity-level distress rather than a resolution.
Oct 4, 2026
U.S. Bankruptcy Court, N.D. Texas
Lending & Foreclosure
Verified Update
Pending
U.S. Bank and Wells Fargo seek to foreclose on Wilmorite's Eastview Mall over a $210 million CMBS loan and call the Town of Victor's eminent domain plan for the parcels a 'debt evasion scheme.'
U.S. Bank National Association and Wells Fargo Bank, through special servicer Rialto Capital Advisors, filed a foreclosure action on September 8 against Eastview Mall owner Wilmorite in New York County Supreme Court after a $210 million CMBS loan went unpaid at its final extended maturity date. Days before a September 28 public hearing on a Town of Victor plan to acquire mortgaged mall parcels by eminent domain and convey them to a Wilmorite-affiliated entity, lenders' counsel filed objections calling the plan a 'debt evasion scheme' meant to strip their collateral out from under the pending foreclosure.
$210 million CMBS mortgage in default
Retail
Why it matters: The dispute tests whether a municipality can use eminent domain to help a defaulted borrower retain a property ahead of foreclosure, a maneuver that — if it succeeds — would give distressed CRE borrowers with cooperative local governments a novel way to defeat lender remedies. CMBS special servicers negotiating extensions with borrowers who have close ties to local officials should watch for this kind of parallel municipal action.
Sep 25, 2026
Supreme Court of the State of New York, New York County
Lending & Foreclosure
Verified Update
Filed
Brightline Holdings and sixteen affiliates, including station-area developers New Flagler Development and Brightline Property Holdings, filed Chapter 11 to restructure roughly $5.5 billion in debt.
Fortress Investment Group-backed Brightline Holdings LLC and sixteen affiliated entities — including station-area development companies New Flagler Development LLC and Brightline Property Holdings LLC — filed jointly administered Chapter 11 petitions on September 24, 2026 in the U.S. Bankruptcy Court for the District of New Jersey. The case aims to restructure roughly $5.5 billion in debt while Brightline's operating railroad, excluded from the filing, continues running trains between Miami and Orlando.
$5.5 billion in consolidated debt across the Brightline enterprise; $258M DIP facility
Why it matters: Pulls a set of commercial real estate development entities into a major Chapter 11 case even as the sponsor keeps its operating business out, showing lenders and owners financing transit-oriented or infrastructure-adjacent real estate how quickly a parent-level restructuring can reach development subsidiaries organized as separate legal entities. The $258 million DIP facility and $490 million proposed exit financing, both from existing bondholder Assured Guaranty, will shape recoveries for creditors of the real estate-holding debtors specifically.
Sep 24, 2026
U.S. Bankruptcy Court, District of New Jersey
Lending & Foreclosure
Verified Update
Filed
Silver Point Finance, Vista Bank and NexPoint Real Estate Finance forced Lurin Capital founder Jon Venetos into involuntary Chapter 7, citing $33.7 million in personal guaranty judgments from his multifamily syndication collapse.
Silver Point Finance, LLC, Vista Bank, and NexPoint Real Estate Finance, Inc. filed an involuntary Chapter 7 bankruptcy petition against Jon Venetos, founder of Dallas-based multifamily syndicator Lurin Capital, on September 17, 2026 in the U.S. Bankruptcy Court for the Southern District of Texas. The petitioning creditors cite a combined roughly $33.7 million in judgments already entered against Venetos personally on guaranties tied to Lurin's defaulted apartment portfolio, a step observers have called one of the rarest moves in bankruptcy.
$33.7M in petitioning-creditor judgments behind the involuntary petition; separate $19M guaranty judgment to Acore Capital Mortgage
Why it matters: The filing shows how quickly a sponsor's personal guaranty exposure can outrun a corporate Chapter 11 once multiple lenders reduce separate guaranties to judgment, and illustrates that creditors facing a shrinking, overlapping pool of a guarantor's personal assets may find a coordinated involuntary petition more effective than racing each other to collect individually.
Sep 17, 2026
U.S. Bankruptcy Court for the Southern District of Texas
Lending & Foreclosure
Verified Update
Filed
U.S. Bank filed to foreclose on the 32-unit Bostonian Apartments in Aurora, Colorado over a $3.28 million unpaid loan, after the borrower's Chapter 11 case was dismissed in May 2026.
U.S. Bank National Association filed a foreclosure complaint on September 10, 2026 in Denver District Court against 1592 Boston Street LLC, seeking to foreclose on the Bostonian Apartments, a 32-unit Aurora, Colorado complex, over a $3.28 million unpaid loan. The filing follows a Chapter 11 bankruptcy the borrower filed in January 2026 that was dismissed in May 2026 without a sale or refinancing.
$3,280,000 principal sought; property assessed at approximately $4.3M by Adams County
Multifamily
Why it matters: The case is a compressed illustration of how quickly commercial lenders are moving from bankruptcy tolerance to foreclosure once a small multifamily borrower's Chapter 11 case fails to produce a cure, sale, or refinancing. Owners of similarly distressed, revenue-declining multifamily assets should treat a bankruptcy filing as a narrow, temporary tool rather than a resolution in itself.
Sep 10, 2026
Denver District Court, Colorado
Lending & Foreclosure
Verified Update
Pending
In a $22M+ Red River State Bank loan fight over three Watertown, South Dakota apartment projects, the Chapter 7 trustee may sell the Ruins project to a backup bidder after the developer's $11.265M credit bid collapsed.
A $22M+ loan-default fight between Red River State Bank and Fargo developer Jesse Craig over three Watertown, South Dakota apartment projects has spread across a South Dakota foreclosure court and a North Dakota bankruptcy court. On August 17, 2026, U.S. Bankruptcy Judge Shon Hastings authorized the Chapter 7 trustee to sell the downtown Ruins project to a backup bidder after Craig's own winning $11.265M credit bid collapsed over unresolved lien-priority issues, costing him more than $1.1M in forfeited earnest money.
$22M+ in defaulted promissory notes; The Ruins parcel resold for $6.1M after an $11.265M credit bid unraveled
Why it matters: Shows how a mid-size regional CRE loan default can splinter into parallel state foreclosure, federal removal/remand, and out-of-state bankruptcy proceedings that each move on independent timelines. Lenders and workout counsel should treat a Chapter 7 credit-bid win as provisional until the trustee's lien inventory is complete and title actually clears.
Aug 17, 2026
U.S. Bankruptcy Court, District of North Dakota
Lending & Foreclosure
Verified Update
Filed
U.S. Bank, as trustee for a 2016 CMBS trust, sued to foreclose on an office complex in Princeton Pike Corporate Center in Lawrence Township, NJ after a $130M loan matured unpaid, and seeks a receiver.
U.S. Bank National Association, as trustee for a 2016 Morgan Stanley Bank of America Merrill Lynch commercial mortgage trust, sued Lenox Drive Office Park LLC on August 12 to foreclose on an office complex within the Princeton Pike Corporate Center in Lawrence Township, Mercer County, New Jersey, after a $130M loan originated in December 2015 matured unpaid on January 1, 2026. The complaint seeks a judicial foreclosure and sale of the property, plus immediate appointment of a receiver to operate the complex while the case proceeds.
$130M loan balance; matured unpaid January 1, 2026
Why it matters: A clean maturity-default case, not a covenant or performance dispute, illustrating how 2015-2016-vintage CMBS office loans are colliding with a refinancing market that no longer supports their original terms. The trust's request for a receiver ahead of any foreclosure sale shows special servicers moving to seize operational control of underperforming office collateral faster than a contested foreclosure alone would allow, a pattern owners of similar-vintage suburban office loans should read as an early-warning template.
Aug 12, 2026
U.S. District Court, District of New Jersey
Lending & Foreclosure
Verified Update
Filed
U.S. Bank, for a CMBS trust, seeks a receiver over Republic Plaza, Denver's 56-story tallest office tower, after owners Brookfield and MetLife failed to repay the ~$130M loan at its March 15, 2026 maturity.
U.S. Bank National Association, acting on behalf of the CMBS trust holding the loan, sued Brookfield Properties affiliate BOP Republic Plaza I LLC in Denver District Court on August 10, seeking appointment of a receiver over Republic Plaza — Denver's 56-story tallest office tower — after owners Brookfield Properties and MetLife Investment Management failed to pay off the loan at its March 15, 2026 maturity. It is the second default on the loan in three years; an earlier default was resolved through a July 2023 modification that extended the maturity to this March. The complaint, quoting the loan documents, states that the borrower, 'being a sophisticated commercial borrower, has failed to make payments as required,' and asks the court to install a receiver to protect and manage the tower while the debt goes unpaid.
~$130M defaulted loan; Trepp lists total CMBS debt at $230.1M
Why it matters: The filing shows post-pandemic office distress reaching even institutionally owned, marquee downtown assets: Republic Plaza pairs a top-tier global asset manager with an insurance-company balance sheet, yet neither prevented a second maturity default in three years as tenants shrink footprints. Colorado receivership is an equitable remedy a lender can pursue separately from, and well before, a completed foreclosure sale, letting it seize operational and cash-flow control of a distressed asset while litigation is still pending. Owners and asset managers with loans maturing into the current environment should treat a receivership filing as an earlier and faster-moving risk than a foreclosure complaint, since it can strip day-to-day control of a property long before any sale.
Aug 10, 2026
Denver District Court, Colorado
Lending & Foreclosure
Verified Update
Filed
A Bracebridge-led senior lender group, through U.S. Bank, sued to foreclose on the 124,000-square-foot retail component of Brightline's MiamiCentral Station over a $65M senior loan after missed payments.
U.S. Bank, acting as administrative agent for a senior lender group led by Bracebridge Capital affiliate XYQ Cayman Ltd., sued on July 30 to foreclose on the 124,000-square-foot retail component of Brightline's MiamiCentral Station after owner Brightline Investment Holdings and subsidiary DTS DT Retail LLC missed a $16M principal payment due December 26, 2025, a further $6M payment due March 15, 2026, and quarterly interest payments dating to December 2025. The complaint, filed against Brightline Investment Holdings, DTS DT Retail, and property manager FECI Realty, seeks foreclosure, enforcement of Brightline Investment Holdings' guaranty, and appointment of a receiver over the property.
$65M senior foreclosure claim (of $128.5M total 2022 financing)
Why it matters: The filing shows a lender enforcing against a transit-oriented retail asset independently of the sponsor's core operating business, since the suit reaches only the senior tranche of a bifurcated 2022 loan and does not touch Brightline's passenger-rail operations, which continue unaffected. It arrives alongside Brightline's own well-documented rail-financing debt strain, giving lenders and retail tenants at other transit-adjacent developments an early signal of how quickly a senior lender can seek receivership over an underperforming retail component, separate from the parent enterprise's overall solvency.
Jul 30, 2026
Miami-Dade County Circuit Court
Lending & Foreclosure
Verified Update
Filed
Houston non-traded REIT Silver Star Properties filed its second Chapter 11 in four years after a failed office-to-self-storage pivot, with over $65M in guaranteed loans in default.
Houston-based non-traded REIT Silver Star Properties filed its second Chapter 11 petition in four years on May 28, following a failed pivot from office assets to self-storage. Four guaranteed loan agreements totaling over $65M are in default, and a separate $5.75M promissory note on a self-storage property moved to foreclosure on June 2. The filing follows an SEC inquiry and a settled internal fraud/fiduciary-duty suit against the REIT's ousted founder, Allen Hartman, tied to an earlier $259M Goldman Sachs CMBS loan default.
$100M assets vs. $75M liabilities; $65M+ in defaulted loans
Why it matters: Illustrates how leadership litigation and governance disputes within a REIT can compound loan-covenant distress and precipitate repeat bankruptcy filings. Lenders and boards evaluating distressed CRE borrowers are increasingly treating unresolved founder/fiduciary-duty litigation as an independent credit risk factor, separate from asset-level performance, amid the broader wave of CRE loan maturities.
May 28, 2026
U.S. Bankruptcy Court, Northern District of Texas
Lending & Foreclosure
Verified Update
Settled
In Harbor Custom Development's Chapter 11, lender Sound Capital NW took the 80-unit Pacific Ridge Apartments in Tacoma with a $5 million credit bid against a roughly $20.3 million loan balance.
As part of Harbor Custom Development's Chapter 11 reorganization, lender Sound Capital NW Holdings LLC took title to Pacific Ridge Apartments, an 80-unit Tacoma complex completed in 2022, via a $5 million credit bid against a construction loan with an outstanding balance of roughly $20.3 million — well above the property's $17.5 million-plus assessed value.
$5M credit bid against a construction loan with an approximately $20.3M outstanding balance
Why it matters: A concrete data point on construction-loan recovery economics in a distressed multifamily workout: even a completed, occupied 80-unit asset returned only about 25 cents on the dollar of the outstanding loan balance via credit bid, with the shortfall left to the Chapter 11 estate's other creditors. Construction lenders and mezzanine participants underwriting Pacific Northwest multifamily should treat assessed value as a soft floor, not a reliable recovery estimate, once a borrower is in reorganization.
Aug 21, 2024
U.S. Bankruptcy Court, Western District of Washington
