Richmond, Virginia — The Riverfront Plaza office complex faces a potential foreclosure following a lawsuit filed against its owner, Hertz Investment Group. With a crucial lease for one of its primary tenants nearing expiration, the situation has escalated as financial struggles continue to plague the nearly 1 million-square-foot property.
Wells Fargo, representing the noteholders for Riverfront Plaza, filed the lawsuit on August 11 in Richmond Circuit Court. The financial institution is seeking over $131 million in damages and aims to appoint a receiver to take control of the management of the property, located at 901-951 E. Byrd St., prior to an expected forced sale.
Hertz Investment Group, a California-based private equity firm, acquired Riverfront Plaza for $147 million in 2015 but has reportedly defaulted on loan conditions related to a $146 million mortgage. The lawsuit highlights that the lease for Truist Bank, a key tenant that contributes more than $4.2 million annually in rent, is set to expire at the end of this month. The potential loss of this revenue is anticipated to be detrimental to Hertz’s ability to meet its financial obligations under the loan agreement.
The lawsuit emphasizes that another default is imminent. With Truist’s lease ending in August 2025, Wells Fargo asserts that rental income will plummet, further complicating the already precarious financial situation of the buildings. According to court documents, Truist vacated Riverfront Plaza in February 2022 but has continued to fulfill its lease obligations.
Riverfront Plaza consists of two prominent towers — a 20-story East Tower, encompassing 458,000 square feet, and a 22-story West Tower with 475,000 square feet. The total leasable area reaches approximately 934,000 square feet, supported by nearly 2,200 underground parking spaces. Other major tenants include prominent law firms and CoStar, a real estate data firm that is currently subleasing space.
Signs of financial distress for Riverfront Plaza began to surface early last year. Hertz missed a mortgage payment and failed to fulfill cash reserves necessary after a significant tenant indicated intentions not to renew its lease. As a result, the property was placed under special servicing, involving an independent firm to mediate between the lender and the borrower.
Wells Fargo’s lawsuit details several defaults by Hertz, including a failure to deposit over $2.6 million into a required reserve account and not providing essential financial documents to the bank. The lawsuit claims that Hertz has not adequately justified its operational shortfalls experienced throughout 2025.
The legal action also seeks to appoint commercial real estate firm JLL as the receiver for Riverfront Plaza. If the appointment is approved by the court, JLL will assume management responsibilities, including the authority to list the property for sale. The property spans 3.8 acres and was most recently valued at $187.6 million.
A hearing regarding the petition to appoint JLL as receiver is set for August 26, with Richmond Circuit Judge Claire G. Cardwell presiding over the proceedings. Hertz has not publicly responded to the lawsuit, and company executives did not provide comments when contacted.
The unfolding situation at Riverfront Plaza has drawn significant attention, as it reflects broader trends in the commercial real estate market, particularly concerning the challenges faced by office complexes in adapting to changing tenant needs and economic pressures.
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