Recent events

Trust sues Starwood Mortgage Capital over $46.85M loan with alleged hidden senior lien

Computershare Trust Company, National Association, acting as trustee for the BMO 2024-5C5 Mortgage Trust, filed a lawsuit on September 4, 2026 in the Supreme Court of New York against Starwood Mortgage Capital LLC, alleging Starwood sold the trust a $46.85 million commercial mortgage loan on two Harris County, Texas properties (The Pointe and Oak Shadows) while falsely representing it held a legal, valid and enforceable first lien. The complaint alleges the properties were already encumbered by a $27,601,000 senior deed of trust held by Thistle Creek Partners, LP, and that a later foreclosure wiped out the liens securing the trust's loan. After a repurchase demand from special servicer CWCapital Asset Management LLC, the trust seeks a court order forcing Starwood to buy back the loan or provide a substitute, plus damages of no less than the purchase price. Starwood removed the case to federal court on October 9, 2026. None of the allegations have been proven.