Return to Lender: Week of Dec. 18, 2025

RBC Real Estate Capital Corp. has offloaded non-performing debt tied to 66 San Francisco apartment buildings, teeing up another of the city’s large multifamily portfolios to change hands, according to the San Francisco Business Times. The Canadian lender sold a $570-million loan backed by the properties to an affiliate of Revere Housing for an undisclosed amount. San Francisco-based Hamilton Zanze announced the launch of Revere in January, saying it would target “dislocated” real estate and related loans in high-demand, rent-controlled markets in California.  

The Orion Office Portfolio ($355.0 million | WFCM 2022-ONL) moved to special servicing for what the servicer called “imminent monetary default,” although the loan remains current as of the December 2025 payment, reported Morningstar Credit. Servicer commentary notes that the borrower submitted a modification proposal to extend the maturity date, although the loan is still more than a year away from its February 2027 maturity. The 19-property portfolio had been 100% leased throughout the loan term but was reported at 91% as of September 2025.

Four loans backed by mall properties have gone into special servicing in the past week. The largest was Penn Square Mall ($310.0 million | MSBAM 2019-C29, MSBAM 2016-C28, & MSC 2016-PSQ), which transferred after failing to secure financing ahead of the loan’s January 2026 maturity, according to Morningstar Credit. The Oklahoma City regional mall’s net cash flow had fallen short of issuance since 2020, with the 2024 net cash flow 18% below underwritten expectations. 

Another mall-backed loan has transferred to special servicing, this one on Williamsburg Premium Outlets ($185.0 million | Multiple Conduits). Morningstar Credit reported that the Williamsburg, VA, outlet mall’s performance has faltered in recent years, driven by lower-than-anticipated occupancy.  Occupancy has remained in the high 70% range since 2021 (down from 95% at issuance), pushing the 2024 net cash flow 12% below underwritten levels. 

Morningstar Credit reported that OZRE Leased Fee Portfolio ($110.1 million | Multiple Conduits | CMBX.10) has landed in special servicing ahead of its February 2026 maturity. Occupancy across the East Coast industrial/office portfolio has dwindled to 70% as of December 2024, from 90% at issuance. To date, 15 of the 58 office/industrial properties have been re-leased. 

The Avenues ($100 million | 43% of COMM 2013-CR6) has moved to special servicing ahead of its looming maturity in February 2026, Morningstar Credit said. The regional mall in Jacksonville, FL lost anchor Forever 21 (20% of GLA) in May 2025, which reduced property occupancy to just 45% as of June 2025 from 66% at year-end 2024. Performance was already lagging issuance, with the 2024 net cash flow down 20% from issuance expectations. The loan had previously moved to special servicing ahead of its initial February 2023 maturity, and was modified and extended three years to February 2026. 

Peachtree Mall ($59.0 million | WFCM 2016-NXS6, WFCM 2017-RC1, SGCMS 2016-C5, & CSAIL 2016-C7 | CMBX.10) has moved to special servicing ahead of its December 2025 maturity, Morningstar Credit reported. According to the special servicer, the borrower hopes to extend the loan. The regional mall in Columbus, GA, has failed to reach underwritten expectations during its term due to lower-than-expected revenue, with the 2024 net cash flow 20% below issuance. 

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