Wells Fargo Bank, N.A. v. Workspace Property Trust Affiliates (Multistate CMBS Foreclosure on $1.28B Suburban Office Portfolio)
Wells Fargo Bank, N.A., as trustee for the CMBS trust holding the debt, filed a new foreclosure complaint this month in Hennepin County District Court, Minnesota against Workspace Property Trust affiliates, part of a coordinated multistate foreclosure effort that also includes an Arizona action filed in September 2025 and reported parallel filings in Florida and Pennsylvania. The $1.28B loan, originated in 2018 against a roughly 10-million-square-foot, four-state office and industrial portfolio, transferred to special servicing in May 2023 as occupancy fell from about 89% to roughly 75% and collateral value dropped from $1.63B to about $1.24B. Trigild was appointed receiver over the full portfolio following the Arizona filing.
Why it matters
Shows a special servicer moving from a two-year workout into simultaneous, jurisdiction-by-jurisdiction foreclosure once loan-to-value flips underwater and occupancy keeps sliding, using an early receivership filing in one state to seize practical control of an entire multistate portfolio before any foreclosure sale closes elsewhere. Sponsors and asset managers negotiating extensions on aging office CMBS loans should treat a stalled workout, not just a missed maturity payment, as a trigger special servicers now read as a signal to litigate rather than keep extending.
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