Deutsche Bank National Trust Co. v. WMN Foshay LP ($51M Foshay Tower Foreclosure)
Deutsche Bank, acting as trustee for CMBS bondholders, sued the Foshay Tower's owner, WMN Foshay LP, in Hennepin County District Court in early-to-mid April 2026, alleging the 32-story Art Deco landmark's owner failed to pay off its $51 million mortgage by its May 2025 maturity date and now owes roughly $43 million in unpaid principal, interest, and fees. The suit seeks a court-appointed receiver for the building, which houses the 229-room W Minneapolis hotel along with Manny's Steakhouse, Prohibition Bar, and The Living Room lounge.
Why it matters
A recurring-distress case study: the same building lost its prior owner, Ashford Hospitality Trust, to a 2020 default on the same fundamental problem -- hospitality-anchored CRE debt that assumes room-rate and occupancy levels the underlying market no longer supports. Lenders and buyers evaluating hotel-anchored office/mixed-use towers should treat a building's own default history as a first-order underwriting signal independent of the current owner's specific financial condition, since the underlying asset economics that caused the prior default may not have actually changed.
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