Lending & Foreclosure
Verified Update
Ruling Issued
New York's Fourth Department affirmed a ruling cutting a CMBS special servicer's foreclosure fee request from roughly $588,000 to $250,000 and denying note-rate interest on top of default interest.
On October 9, 2026, New York's Appellate Division, Fourth Department unanimously affirmed an Erie County damages judgment in a commercial mortgage foreclosure brought by the trustee of the JPMBB Commercial Mortgage Securities Trust 2014-C24, acting through special servicer LNR Partners, LLC, against borrower Stradtman Park, LLC. The trust had asked for roughly $588,000 in attorneys' fees and got $250,000, and it was refused note-rate interest of $120,882.59 on top of $583,938.25 in default-rate interest. The appellate panel found both rulings supported by a fair interpretation of the evidence.
$3.6 million CMBS loan; $588,000 fee request cut to $250,000
Why it matters: The decision is a reminder that a foreclosure is an equitable proceeding, so contractual fee and interest provisions in CMBS loan documents are enforced only to the extent a court finds them reasonable and proven. Special servicers that bill out-of-market rates or stack default interest on top of note-rate interest without documenting the math risk a substantial haircut. Borrowers in smaller markets gain a template: local expert testimony on customary foreclosure rates can cap what a securitized lender recovers.
Oct 9, 2026
New York Supreme Court, Appellate Division, Fourth Department
Lending & Foreclosure
Verified Update
Filed
Wilmington Trust sued in Cook County to foreclose on 137 condo units across seven Chicago towers tied to Strategic Properties of North America, seeking nearly $51 million on two credit lines.
Wilmington Trust National Association, as trustee for a Redwood Trust subsidiary holding debt originated by CoreVest, filed suit in Cook County Circuit Court to foreclose on 137 condominium units across seven Chicago towers personally guaranteed by Yitzy Klor, principal of Strategic Properties of North America (SPNA). The suit seeks nearly $51 million on two revolving credit lines, extended in November 2021 and January 2023, that together total $85 million.
~$51M sought in principal and accrued interest (excluding late charges, fees, costs) on $85M combined revolving credit lines
Why it matters: Illustrates the collateral risk lenders take on when financing partial-ownership condo-deconversion assembly plays, where debt service depends on a future supermajority ownership vote the lender cannot control. With one of the seven towers, 200 North Dearborn Street, having failed three straight deconversion votes, the case is a warning for lenders underwriting bulk-buyout sponsors and for condo boards facing similar offers that a stalled deconversion can cascade into sponsor-side insolvency and litigation.
Aug 27, 2026
Circuit Court of Cook County, Illinois, Chancery Division
Lending & Foreclosure
Verified Update
Filed
Wilmington Trust, for the BANK 2018-BNK13 trust, sued to foreclose on 10 East 34th Street, a 55,000-square-foot Midtown office building, over a $37.5 million mortgage and seeks a receiver.
Wilmington Trust, National Association, as trustee for the BANK 2018-BNK13 CMBS trust, sued to foreclose on 10 East 34th Street, a 55,000-square-foot Midtown Manhattan office building owned by an affiliate of Leo Tsimmer's Caerus Group, after the borrower stopped making payments on its $37.5 million mortgage on April 1, 2026. Loan servicer Trimont had sent a default letter on May 6 demanding over $500,000 to cure the missed payments, which went unpaid. The complaint, filed in the Southern District of New York, also seeks immediate appointment of a receiver to take over the building's management and leasing.
$37.5M mortgage; lender also seeks immediate appointment of a receiver
Why it matters: Illustrates how quickly a CMBS special servicer can move from a monetary default to a foreclosure complaint bundled with a receivership request, leaving little runway for an informal workout once a major tenant's non-payment cascades into a loan default. Owners of similarly leveraged, late-2010s-vintage Manhattan office assets should treat a large tenant's rent delinquency as an urgent threat to loan compliance rather than a manageable cash-flow gap.
Aug 18, 2026
U.S. District Court for the Southern District of New York
Lending & Foreclosure
Verified Update
Filed
Wilmington Trust, as CMBS trustee, filed to foreclose the $25.4 million mortgage on the 184-room Hotel Lincoln after the loan matured March 6, 2026 unpaid, the third Nakash-family property facing foreclosure in 2026.
Wilmington Trust National Association, acting as CMBS trustee, sued Nakash Lincoln LLC and Lincoln 1816 LLC on August 14 in the Circuit Court of Cook County, seeking to foreclose on the $25.4 million mortgage secured by Hotel Lincoln, a 184-room boutique property overlooking Lincoln Park Zoo at 1816 North Clark Street. The loan matured on March 6, 2026 without repayment and was transferred to special servicing weeks later; the Nakash family, founders of Jordache Enterprises, bought the hotel for $73 million in 2016 from an entity tied to Neil Bluhm's Walton Street Capital.
$25.4M mortgage foreclosure
Why it matters: The filing is the third Nakash-family commercial property to face lender foreclosure action in 2026, alongside a Wells Fargo suit over 40,000 square feet of Midtown Manhattan retail and a default on a Miami Beach hotel loan, illustrating how a single sponsor's capital strain can surface as parallel, uncoordinated foreclosure filings across unrelated assets and jurisdictions. CMBS special servicers and hospitality lenders should treat a maturity default as a potential signal of a borrower's broader distress rather than an isolated credit event.
Aug 14, 2026
Circuit Court of Cook County, Illinois
Lending & Foreclosure
Verified Update
Pending
Rubenstein Partners admitted defaulting on the $46.1M mortgage on 312 Elm Street, a 26-story Cincinnati office tower, in Wilmington Trust's foreclosure seeking $39.6M; a receiver now runs the building.
Philadelphia-based Rubenstein Partners admitted in an August 12, 2026 answer that it defaulted on the $46.1M mortgage securing 312 Elm Street, a 26-story downtown Cincinnati office tower, after lender Wilmington Trust National Association sued to foreclose on June 7 seeking $39.6M. A court-appointed receiver, Paul Plattner of Colliers Real Estate Management Services, took over the property last month — the third downtown Cincinnati office building to enter receivership this cycle. The same lender sued the same sponsor over a second tower it acquired in the identical 2015 transaction, 312 Plum Street, in December 2024.
$39.6M sought on 312 Elm St.; companion suit seeks $16M+ on 312 Plum St.'s $18.4M loan
Why it matters: Two related foreclosures against the same sponsor by the same lender, both admitted or well advanced, signal structural rather than asset-specific distress and typically move faster to judgment and sheriff's sale than a single isolated default. Owners, lenders, and receivers tracking CBD office distress should treat concentrated multi-loan defaults by one sponsor, and receivership appointments generally, as leading indicators of which buildings are headed for a lender-driven sale rather than a workout.
Aug 12, 2026
Hamilton County Court of Common Pleas, Ohio
Lending & Foreclosure
Verified Update
Pending
Wilmington Trust, as CMBS trustee, sued to foreclose Regions Tower, a 36-story Indianapolis office tower, after its owners missed an October 1, 2023 payoff of roughly $74.9 million, and seeks a receiver.
Wilmington Trust National Association, as trustee for CMBS certificateholders and acting through debt servicer KeyBank, sued to foreclose on Regions Tower -- Indianapolis' third-tallest building -- after owner entities NG 211 N. Pennsylvania St LLC and Regions Tower MF LLC missed an October 1, 2023 deadline to pay off roughly $74.9 million in outstanding loan balance on the 36-story, 685,000-square-foot downtown office tower. The complaint asks the court to order immediate repayment or foreclosure and requests appointment of a receiver to manage the property in the interim.
$74.9M
Why it matters: A landmark-building foreclosure squarely inside the post-pandemic downtown office distress pattern playing out in cities nationally: an aging, roughly 75%-leased tower financed pre-pandemic now can't refinance at a balance its current cash flow and valuation support. CRE lenders holding legacy CBD office CMBS paper should treat missed 2023-2024 maturity dates as a leading indicator, not a one-off, and owners of comparable towers should be modeling reduced-leverage refinancing or repositioning now rather than waiting for a maturity default to force the question.
Feb 2, 2024
Marion Superior Court, Indiana
