Mortgage REIT JER Investors Trust has filed for Chapter 11 bankruptcy, becoming the latest in a string of real estate companies to face financial peril amid 2023’s interest rate environment.

JER Investors filed for bankruptcy protection with the U.S. Bankruptcy Court for the District of Delaware on Friday, Bloomberg reported.

JER describes itself as a specialty finance company managing a portfolio of commercial real estate structured finance products, including mezzanine notes, mortgage loans and commercial mortgage-backed securities, according to its website.

The REIT owes more than $100M to its creditors but has less than $50M in assets. Among the creditors is The Bank of New York Mellon Trust Co., which JER owes nearly $94M, Bloomberg reported. JER also owes C-III Capital Partners, a CRE servicing company that owns more than 8% of JER, nearly $20M.

JER and C-III Capital Partners didn't immediately respond to Bisnow’s requests for comment Friday.

JER is the latest in a string of CRE firms to file for bankruptcy in 2023, as the high cost of borrowing began to sink its teeth into the sector.

In early December, Pennsylvania Real Estate Investment Trust filed for Chapter 11 bankruptcy for the second time in three years, while Houston-based Silver Star Properties REIT also filed for Chapter 11 in September. Coworking giant WeWork also filed for Chapter 11 in November, leaving office owners across the nation in doubt over the fates of their properties.