Treasury par yields, Aug. 31 close (U.S. Treasury). SOFR, Aug. 31 (New York Fed).
This week: A CMBS trustee sued to foreclose on an eight-building Lawrenceville, N.J., office campus with $141.8M owed; a $377.6M loan on six Brookfield-owned DC-area office buildings missed its final maturity; and Providence Place sold for $133M out of receivership.
Princeton Pike: $141.8M owed on a campus stressed at $49.8M
Princeton Pike owes $141.8M. Morningstar DBRS's stressed value is $49.8M.
Lenox Drive, Lawrenceville, NJ · Office
- Borrower
- Lenox Drive Office Park LLC
- Loan
- $130.0M (Dec. 2015) · Morgan Stanley
- Trust
- MSBAM 2016-C28 · ~6.5% of pool
- Servicer
- Greystone (C-III at transfer)
- Size
- 809,458 sf · 8 buildings · built 1989
- Court
- D.N.J. No. 3:26-cv-10200
What happened. On Aug. 12, U.S. Bank, as trustee for MSBAM 2016-C28, filed a foreclosure suit in federal court in New Jersey against borrower Lenox Drive Office Park LLC over Princeton Pike Corporate Center, an eight-building office campus along Lenox Drive. The complaint says the $130M loan matured Jan. 1 and was not repaid. It asks for a court-ordered sale and a receiver to run the campus while the case is pending.
The numbers. The complaint puts the balance at $141.8M as of July 1, including default interest, late fees and servicing charges. The campus appraised at $199M when the loan was made in 2015. In March 2025, Morningstar DBRS cut that figure by 75% to a stressed value of about $49.8M, or $61 a foot, and projected a loss of about $34.0M. The amount owed is nearly three times that stressed value.
The squeeze. The campus was more than 90% occupied when it sold in January 2016. Occupancy fell to 59.5% by September 2023 and to 44.8% by December 2024, after the second- and third-largest tenants left when their leases ended in April and June 2024. Debt service coverage went from 1.50x in September 2022 to 1.16x a year later. The loan was transferred to special servicing in February 2024 for imminent monetary default, almost two years before it matured. No public record shows a modification or extension.
What's next. No receiver appointment was confirmed in the research. The Morningstar DBRS figure comes from a haircut model, not a new appraisal, and no updated appraisal was found. Another office loan in the same trust, Princeton South Corporate Center (5.8% of the pool), is already REO.
Eight situations to track
- Past maturityProject James (BSREP 2021-DC)Washington, DC & Northern Virginia · Office
$377.6M loan missed its Aug. 9 final maturity; KBRA values the six remaining buildings at $265.4M, a 142.2% loan-to-value.
- ForeclosureWorkspace Property Trust portfolioAZ, FL, MN & PA · Suburban office/flex
$1.23B unpaid on 143 properties; the trustee filed foreclosure suits in Arizona and Minnesota in August, with a receiver already in place since 2025.
- BankruptcyHawthorne Race CourseStickney, IL · Racetrack/land
$90M court-approved sale of the 108-acre site to a Digital Realty affiliate, while Stickney has adopted a six-month moratorium on data centers.
- AuctionParkway CenterGreen Tree (Pittsburgh), PA · Office
351,004 sf across three buildings went to online auction on Aug. 24; the other three, marketed as 99% leased, are offered separately, with more than $40M owed at foreclosure filing.
- ReceivershipThe LettermanChicago, IL · Student housing
$38M Fannie Mae loan; a receiver took control of the 482-bed property in July after the owner's Chapter 11 case was dismissed.
- Foreclosure suit1250 Connecticut Ave. NWWashington, DC · Office
$61.4M 2019 loan; Credit Agricole filed a foreclosure suit against the BGRE-affiliated owner around Aug. 24.
- Notice of default1950 Sawtelle Blvd.Los Angeles, CA · Office
$33M loan unpaid since its January maturity; a notice of default was recorded in July with occupancy near 35%.
- Past maturitySilver Spring PlazaSilver Spring, MD · Office
$35M interest-only loan missed its extended July 11 maturity; the July filing shows interest paid through June 11 and 1.34x coverage.
Providence. Providence Place closed Aug. 20 to a Paolino, Pyramid and DW Partners group for $133M in cash, about 51% of the $259M owed when the receivership began.
Philadelphia. A federal judge approved the $70M receiver sale of Centre Square on Aug. 17; about $375M was owed at foreclosure.
San Francisco. Argentic took 150 Post St. by deed-in-lieu on Aug. 26, according to a trade report; about $73.6M was owed.
- Oct 16
- Centre Square: closing deadline for the $70M sale
- Early Feb 2027
- Stickney's six-month data center moratorium (Hawthorne site) is expected to expire
— The DistressedAsset.com editorial team
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