The ownership of one of New York City’s most expensive hotels could go up for sale in a UCC foreclosure auction in two weeks.

Special servicer Wells Fargo issued a default statement on a $115M CMBS loan on the Mark Hotel, located at 25 East 77th St., last month after the mortgage borrower failed to make that month’s payment on the loan, according to a DBRS Morningstar report. The loan was transferred to special servicing in April.

The Mark Hotel, owned by Alexico Group, is set to reopen next week and is home to the most expensive hotel room in the city. Meghan Markle, The Duchess of Sussex, had her baby shower at the 12K SF penthouse suite, which reportedly goes for $75K per night. It is known as the "it" spot for celebrities to get ready for the New York fashion event of the year, The Met Gala.

The mezzanine lender on the hotel issued a default notice May 4, according to the special servicer notes on the mortgage, and Wells Fargo issued a default notice nine days later. The last reported owner of the mezzanine debt was RFR Holding, which acquired the $65M loan in 2016 and lists it on its website.

Morningstar's report did not say who owns the mezzanine note. Alexico, which owns the leasehold interest on the building also known as 1000 Madison Ave., and RFR didn't return requests for comment.

Through cure rights, the mezzanine lender made May’s payment on behalf of the primary borrower, according to Morningstar's report on the loan, and scheduled a UCC foreclosure sale for June 24. As of June 9, this month’s payment had not been made.

A foreclosure auction could allow the mezzanine lender scoop up equity interest in the mortgage borrower and take over the entity that owns the hotel. Alexico or outside entities could make a bid for the equity interest in the mortgage as well.

The appraisal for the CMBS loan values the property at $427M. When S&P Global rated the loan in 2017, when JPMorgan Chase issued it, the ratings agency estimated the property was worth half that. The $115M CMBS loan was half of the $230M senior mortgage Alexico secured from the bank.

Last month, the hotel auctioned off a stay at the room for charity. Its average per night rate was $1,176 in 2017, making it one of the most expensive hotels in the city, according to S&P Global.

CORRECTION, JUNE 11, 1 P.M. ET: The ownership of the mortgage borrower could go up for sale at a UCC foreclosure auction. A previous version of this article inaccurately stated that the mortgage itself could go up for sale.