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by DistressedAsset.com

No. 6 · Tuesday, August 25, 2026

10-yr Treasury4.70%−2 bp w/w
5-yr Treasury4.41%+3 bp w/w
SOFR3.65%−1 bp w/w

Treasury par yields, Aug. 24 close (U.S. Treasury). SOFR, Aug. 24 (New York Fed).

This week: A new appraisal puts Parkhill City's $225M loan at about 126% of value; Harlem USA's $108M loan went to special servicing two months before maturity; and the trustee on Hotel Lincoln's loan sued to foreclose over a claimed $25.4M in unpaid principal.

The File

Parkhill City: a $225M loan on a $178.6M appraisal

Parkhill City was appraised at $325M in 2021. The new figure is $178.6M.

152-11 89th Ave. & 152-09 88th Ave., Jamaica, Queens, NY · Multifamily

$225MLoan balance
$178.6MAppraisal, Aug. 2026
~126%Debt to appraised value
Owner
Chetrit Group
Loan
$225M (2021) · Starwood / BMO
Trust
PKHL 2021-MF
Special servicer
CWCapital
Receiver
OPEX CRE Management
Size
538 units · built 2016–2019

What happened. A reappraisal reported Aug. 19 values Parkhill City at $178.6M. That is about 45% below the $325M as-stabilized value behind the $225M loan made in June 2021. The loan is the only one in PKHL 2021-MF. It has been with special servicer CWCapital since February 2023 and matured unpaid in July 2023. A federal court appointed a receiver in March 2025.

The numbers. At $178.6M, the $225M balance runs about 126% of appraised value, and that's before interest and fees; the total owed was about $253M by mid-2024. KBRA's own underwrite at issuance came to about $178.4M, almost exactly the new appraisal, and S&P put the LTV at 131.4% on day one. KBRA's September 2024 value was $143.0M.

The squeeze. The property was 79.6% occupied when the loan closed, and the receiver had it 93.4% leased by July 2025. But costs outran rents, and about $2M in utility bills went unpaid before the receiver took over, according to a trade report. In September 2025 the servicer deemed the collateral non-recoverable, and every rated class stopped receiving interest. At that point $28.7M of servicer advances were outstanding and interest shortfalls totaled $1.6M.

What's next. No sale date or deed-in-lieu has been reported in the federal foreclosure case. KBRA has had every class of the trust on Watch Downgrade since September 2025.

The Radar

Eight situations to track

CriticalHighWatchStable
  • Foreclosure suit
    Hotel LincolnChicago, IL · Hotel

    $25.4M in unpaid principal claimed in an Aug. 18 Cook County foreclosure suit; the loan matured unpaid March 6.

  • Receivership
    Rosewood CommonsPleasanton, CA · Office

    837,793 sf and 52% occupied; a court-appointed receiver has listed the campus after a $400M portfolio loan defaulted at its 2024 maturity.

  • REO
    Corporate 500Deerfield, IL · Office

    $130M foreclosure judgment, and the lender now holds the 696,770 sf leasehold. It is 72% leased; Hilco lists Sept. 10 for bids.

  • Foreclosure suit
    Air BuffaloAmherst, NY · Multifamily

    Loan of more than $18M on 154 units near UB; lenders acting through Deutsche Bank National Trust have started foreclosure, the second against a DMG affiliate in Amherst this month.

  • Special servicing
    Harlem USANew York, NY · Retail

    $108M loan against an $82M KBRA value; it went to special servicing in August for imminent default ahead of its October maturity.

  • Past maturity
    Hyatt Regency New OrleansNew Orleans, LA · Hotel

    $325M loan missed its April maturity. The borrower asked for four months to finalize takeout financing, and no refinancing has been reported.

  • Special servicing
    SIXTY Beverly HillsBeverly Hills, CA · Hotel

    $37M loan missed its August "ultimate" maturity and is in special servicing for a third time; March cash flow was $2.2M against $4.7M underwritten.

  • Special servicing
    Fashion Fair MallFresno, CA · Regional mall

    $325M interest-only loan went to special servicing in August ahead of its Nov. 1 maturity. The mall is 96% occupied, and servicer commentary expects a modification.

What happened

Willow Grove, PA. PREIT agreed to a lender-directed sale of Willow Grove Park Mall by deed in lieu after PGIM's $170M loan matured in March; no official price has been disclosed.

Atlanta. Saratoga Capital Partners paid $98.4M for Generation Atlanta at its Aug. 4 foreclosure auction, about $6M short of the $104.4M loan.

San Antonio. A Blue Sky Bank entity took back the 54,000 sf Vogue Building at the August foreclosure sale with a bid below the $6M loan.

Update. A Hill City Capital affiliate won Spirit Airlines' Dania Beach headquarters with a $93.25M cash bid on Aug. 11, about 70% of the county's $133M assessed value.

Dates to watch
Sep 10
Corporate 500: Hilco's announced bid deadline for the leasehold interest
Oct
Harlem USA: $108M loan reaches maturity
Nov 1
Fashion Fair Mall: $325M loan reaches maturity

— The DistressedAsset.com editorial team

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