Treasury par yields, Aug. 10 close (U.S. Treasury). SOFR, Aug. 10 (New York Fed).
This week: The owners of 261 Fifth Ave. got a forbearance on a $180M loan that matured last September; Tahoe City's Boatworks Mall goes to a trustee's sale Aug. 12; and Nitya Capital paid off The Interlace's $31.4M loan days after the August foreclosure auctions.
261 Fifth Ave.: $180M of debt, a $120.6M city value
261 Fifth Ave. got a forbearance at maturity. The city values it at $120.6M.
261 Fifth Ave., New York · Office
- Owner
- Feil Organization & BLDG Management (TIC)
- Loan
- $180.0M (2015) · 4.42% interest-only
- Trusts
- MSBAM 2015-C25 ($110M) · BACM 2015-UBS7 ($70M)
- Special servicer
- Midland Loan Services
- Size
- 441,922 sf · 26 stories · built 1929
What happened. The tower's owners, a tenants-in-common venture of the Feil Organization and BLDG Management, signed a forbearance agreement with special servicer Midland Loan Services in September 2025, per KBRA's June 11 report. The $180M interest-only loan came due that September and was not paid off. It had been current until then.
The numbers. New York City's FY2026–27 market value for the building is $120.6M. That is about 67% of the loan balance and below the owners' $193.2M cost basis recorded at the 2015 financing. At closing the loan was underwritten at 76.1% loan-to-value and 1.14x debt service coverage. Interest alone runs about $663,000 a month. The city figure is a tax value, not an appraisal, and no appraisal reduction has been reported.
The squeeze. Occupancy was 99.7% at closing and 87% at year-end 2024. Fitch said cash flow at that level appeared sufficient to cover debt service; the loan then missed its balloon payment. Listings this summer show about 81,684 sf available, some of which may be sublease space. The loan is split across two trusts. The controlling $110M note sits in MSBAM 2015-C25, where KBRA counted it at 24.1% of the pool, and a $70M note sits in BACM 2015-UBS7, so any workout has to run through both.
What's next. The forbearance terms are not public: how long it runs, any paydowns, any sale deadlines. A mortgage-related document dated Feb. 27, 2026 was recorded with the city, but what it is hasn't been confirmed.
Six situations to track
- Sale setBoatworks MallTahoe City, CA · Retail
About $15.5M owed with charges on a $15M 2023 loan. Default notice cited unpaid property taxes and missing proof of insurance; trustee's sale set for Aug. 12.
- BankruptcyLatitude 2976Houston, TX · Multifamily
Fannie Mae alleges payments stopped in June 2025; the loan is back on the August foreclosure list five months after a Chapter 11 filing.
- Sale postedThe Republic ApartmentsGarland, TX · Multifamily
$78.6M loan on 1,033 units was posted for the Aug. 4 trustee sale; no result or deed transfer has been reported.
Since thenSept. 1: The Republic was not on the September Texas foreclosure list. - Sale postedHyde Park at Valley RanchIrving, TX · Multifamily
$69.4M floating-rate Freddie Mac loan in special servicing is listed for an August foreclosure auction; cash flow fell short of the $4.9M underwritten.
- Sale postedThe MorganAustin, TX · Multifamily
$60.1M bridge loan in the FS Rialto 2021-FL3 CLO matured Feb. 9 unpaid; a substitute trustee's sale was posted for Aug. 4.
- Sale postedThe BrittanyFort Worth, TX · Multifamily
$49.5M loan made in 2025 on 227 units was the largest new loan on Tarrant County's August auction list; no result reported.
Dallas. Nitya Capital paid off the $31.4M loan on the 432-unit Interlace on Aug. 7 with a new $30M five-year loan at 7.61%, ending the foreclosure threat.
- Aug 12
- Boatworks Mall: trustee's sale, Roseville, CA
- Sep 1
- Texas first-Tuesday foreclosure auctions
— The DistressedAsset.com editorial team
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