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DistressRadar

by DistressedAsset.com

No. 2 · Tuesday, July 28, 2026

10-yr Treasury4.65%+5 bp w/w
5-yr Treasury4.40%+7 bp w/w
SOFR3.64%+7 bp w/w

Treasury par yields, July 27 close (U.S. Treasury). SOFR, July 27 (New York Fed).

This week: The loan on Oakland's 1 Kaiser Plaza matured unpaid at about 181% of the building's appraised value; a lender won the auction of two downtown Miami office towers with a $15M credit bid against a $65.7M judgment; and the developer of Bellevue's empty Bravern towers agreed to buy them back.

The File

1 Kaiser Plaza: $97.1M of debt on a $53.5M tower

1 Kaiser Plaza's loan matured July 1. The appraisal says $53.5M.

1 Kaiser Plaza, Oakland · Office

$97.1MLoan, matured July 1
$53.5MAppraisal, 2026
~181%Debt to appraised value
Owner
Creative Media & Community Trust (CMCT)
Loan
$97.1M (2016) · 4.14%
Trusts
JPMCC 2016-JP3 / JPMDB 2016-C4
Servicer
KeyBank
Size
528,000 sf · 28 stories

What happened. The $97.1M loan on 1 Kaiser Plaza matured July 1 and was not repaid. On July 9 the lender sent a written default notice. It demands the full balance and directs that the building's rents be held in trust for the lender. The owner, Creative Media & Community Trust, disclosed the default in an SEC filing on July 15.

The numbers. The tower was valued at $212M when JPMorgan made the loan in 2016. A 2026 appraisal puts it at $53.5M, about 75% lower. Against the $97.1M balance, the debt runs about 181% of appraised value. The default rate is 5 points above the 4.14% contract rate.

The squeeze. The owner says it is current on interest but chose not to put in the capital a refinance would take. The loan has been in special servicing since October 2024, when Kaiser Permanente moved to cut its 236,692 sf headquarters footprint by about a third. Kaiser made up 23.4% of the owner's annualized rent in 2025. Occupancy is below 70% and cash flow is around breakeven, according to a trade report.

What's next. The owner says it is working with the special servicer and lender on a long-term resolution or an extension. A 6,896 sf law-firm lease in the building expires in September. In June, the 535,000 sf Clorox Building at 1221 Broadway in Oakland went to its lender through foreclosure on a $239.6M loan.

Since thenOct. 2: KBRA estimated a $52.4M loss on the $97.1M loan and put the building at 55.2% leased.
The Radar

Seven situations to track

CriticalHighWatchStable
  • Sale set
    Metropoint 300 & 400St. Louis Park, MN · Office

    About $43.7M owed on two eight-story towers after Wells Fargo left. A sheriff's sale is set for September.

  • Receivership
    AMA PlazaChicago, IL · Office

    $372M foreclosure claim against a $208.5M appraisal. The receiver has hired JLL to sell the 83%-leased Mies tower.

  • Bankruptcy
    Spirit Airlines headquartersDania Beach, FL · Office campus

    $261M in land and buildings on Spirit's books. The campus is being sold in bankruptcy.

    Since thenAug. 11: a Hill City Capital affiliate won the auction with a $93.25M cash bid.
  • Special servicing
    Meadows MallLas Vegas, NV · Regional mall

    $100.4M loan went to Midland ahead of its second maturity. A three-year extension in 2023 didn't stabilize cash flow.

  • Past maturity
    Westfield Belden VillageCanton, OH · Regional mall

    $84.8M loan, the only one in MSC 2011-C3, missed its July extended maturity. Cash flow hasn't reached underwritten levels since 2015.

  • Past maturity
    Yorktown CenterLombard, IL · Regional mall

    $107.4M pooled balance missed its June extended maturity. A deed-in-lieu is being pursued after its fifth special servicing transfer.

  • Default
    1 Grant Ave. & 156 Geary St.San Francisco, CA · Retail

    $41.1M owed on two Union Square buildings, one vacant since 2021. A July 14 default notice started a 90-day clock.

What happened

Miami. The lender's $15M credit bid won the July 20 auction of 44 West Flagler and 200 SE First Street, against a $65.7M judgment.

San Francisco. Yellowstone took four entitled Parkmerced parcels with $30M of credit bids. Its $101M loan from 2022 had grown past $199M.

Atlanta. An Arbor affiliate took back the 534-unit Crest on Peachtree with an $85.9M credit bid, $4.9M under its $90.8M loan.

Bellevue, WA. Schnitzer West, which built the Bravern office towers, agreed to buy them back through a court-approved sale process. The price wasn't disclosed, and the loan is $304M.

Dates to watch
Sept
Metropoint 300 & 400: sheriff's sale, Hennepin County
Sept
1 Kaiser Plaza: 6,896 sf law-firm lease expires
Mid-Oct
1 Grant Ave. & 156 Geary St.: 90-day default notice period ends
Fall
Bravern Office Commons: expected closing of the Schnitzer West purchase
Jan 2027
Bravern Office Commons: $304M CMBS debt matures

— The DistressedAsset.com editorial team

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