Group 1 - The Frontier has maintained occupancy above 90%, but net cash flow in 2024 is 16.3% below the underwritten level due to declining revenues and rising expenses [3] - The loan's Debt Service Coverage Ratio (DSCR) has remained around breakeven since 2021, indicating cash flow issues [3] - Revenue is higher than the original underwriting, but expenses have significantly increased, making refinancing difficult for property owners [4] Group 2 - Waterford Grove Apartments failed to secure the tax exemption required under the loan agreement, necessitating a principal paydown to meet the 1.25x DSCR and 8.5% debt yield thresholds [4] - The Riley in Richardson, Texas, was transferred to special servicing due to a cash trap related to tax exemption issues [5] - Houston and New York City have seen an increase in multifamily distress, with more properties entering special servicing [6] Group 3 - Waterford Grove Apartments, with a $62.5 million loan, moved to special servicing for imminent monetary default, reporting a 31% decline in net cash flow from underwriting [6] - The Frontier, a 91-unit apartment complex in New York City, moved to special servicing after missing its March 2026 maturity date on a $44.1 million loan [6]