Return to Lender: Week of Jan. 8, 2026

Barchart · 2d ago

Lone Star Funds has acquired debt backed by a building previously owned by WeWork, positioning itself to take ownership of the San Francisco office tower through foreclosure. The San Francisco Business Times reported that a Lone Star affiliate paid close to $130 million to acquire a nonperforming $240-million loan backed by 600 California St. from its lenders. The sale price represents a substantial discount to the $322.8 million that WeWork Capital Advisors paid to acquire 600 California in 2019.

The Philadelphia Business Journal reported that the former North American headquarters of pharmaceutical firm GSK has sold at a steep discount, two years after Rialto Capital Management filed a foreclosure complaint against Korea Investment Management. The reported sale price of $52.0 million is a 26% discount to the $70.2-million appraised value from September 2025 and a 60% reduction in its 2018 sale price. The property has been vacant since GSK vacated in 2022.

WC Smith has sold Federal Gateway, the Washington, DC Navy Yard building that houses its headquarters, at a third of its assessed value in a short sale to a Minnesota company making its second buy in the neighborhood. The Washington Business Journal reported that an affiliate of Onward Investors acquired the property at 1100 New Jersey Ave. SE, for $43 million. The building’s 2025 assessed value is $132 million.

The first office development in the Harwood District of Uptown Dallas has a new owner with plans to renovate the building in the first half of the year, according to the Dallas Business Journal. Dallas-based Cawley Partners acquired Harwood No. 1, a 106,000-square-foot, seven-story tower that was developed in 1982 by Harwood International Inc. The tower is currently 50% leased. Although the sale price was not disclosed, Dallas Central Appraisal District last valued the property at $25 million. First United Bank was a lender on the historic property and regained ownership through a November foreclosure auction with a winning bid of $27.2 million.

The Commonwealth Building at 421 S.W. Sixth Ave. in downtown Portland, OR sold for $6.5 million, or around $29 per square foot, the Portland Business Journal reported. The buyer is listed as Commonwealth Portland Building LLC. Newmark’s Nick Kucha represented the seller. The building last sold for $69 million in 2016.

The $835-million securitized loan on One New York Plaza (ONYP 202-1NYP) has transferred to special servicing, according to Morningstar Credit. The loan, backed by a Brookfield-owned 2.5-million-square-foot office building in Manhattan’s Financial District, was facing a final maturity date later this month after using all three of its contractual extension options. Brookfield is seeking to extend the loan on the property, where both occupancy and cash flow have declined in recent years.

Lincolnwood Town Center ($44.5 million | 46.9% of JPMCC 2014-C20 | CMBX.8) was sold for $12.3 million, Morningstar Credit reported. The loan, backed by a regional mall in Lincolnwood, IL, was an early COVID-related transfer, moving to special servicing in May 2020 and eventually becoming REO in August 2021.

The Bank Tower, a 16-story office property in downtown Pittsburgh originally built in 1902 as the headquarters of People’s Savings Bank, is now in loan default, the Pittsburgh Business Times reported. A complaint filed in the Allegheny County Court of Common Pleas filed on December 23 by S&T Bank claims owner McKnight Bank Tower LLC, an affiliate of McKnight Realty Partners, is in default for “failure to make payments” on a debt balance of a little more than $5.99 million. The Business Times reported that the property has lost several tenants.