Return to Lender: Week of July 17, 2025

Six years after Hahnemann University Hospital filed for bankruptcy, its long-vacant patient towers are on the brink of getting a fresh start as apartment buildings, the Philadelphia Business Journal reported. New York developer Dwight City Group has the two Broad Street towers and three other former Hahnemann properties under contract and expects to close on the acquisition after a bankruptcy auction. Dwight City Group placed stalking horse bids totaling $16.25 million on the five buildings in May. The firm plans to convert the former patient towers at Broad and Vine streets into 288 residential units with commercial space.

The Paul Brown Lofts in downtown St. Louis are slated to sell for $5.6 million, following a foreclosure auction held by the U.S. Department of Housing and Urban Development for the 16-story apartment and retail building. The St. Louis Business Journal reported that Atlanta-based Frank Zhang placed the winning bid. HUD helped finance the 2005 redevelopment of the Paul Brown Lofts, 206 N. Ninth St.

Bondholders of the CMBS trusts holding the $310-million loan against the 512,171-square-foot office property at 535-545 Fifth Ave. in Midtown Manhattan have filed to foreclose against the loan, Trepp reported. The suit was filed in New York Supreme Court for New York County by Wilmington Trust, trustee of the three deals. The collateral property is owned by the Moinian Group of New York, which bought it in 2006 for $116.25 million. Servicer notes compiled by Trepp indicate that Moinian has been in talks with special servicer LNR Partners over terms of a possible workout. Moinian is also said to be trying to refinance the loan.

The San Francisco Business Times reported that Columbia Property Trust is seeking to offload 201 California St. after defaulting on a $1.7-billion mortgage tied to that building and six others in 2023. The New York-based real estate investor tapped Eastdil Secured to market the 273,333-square-foot, 65% vacant Financial District building for sale. Although pricing guidance for the building was not available, a source told the Business Times that guidance was expected to be around $250 per square foot, which would value 201 California in the upper $60-million range. That compares to the $239 million Columbia paid for the property in 2019, when it was nearly full.

The debt tied to the historic Breuner Building in Uptown Oakland is up for sale, clearing the path for an investor to acquire the property at a major discount. The San Francisco Business Times reported that Newmark is marketing the nonperforming $42-million loan tied to the 197,870-square-foot building at 2201 Broadway, with price guidance around $10 million. While the property itself is not for sale, the Business Times reported that after purchasing the debt, an investor could acquire the building via a deed in lieu of foreclosure.