The $60 million 7th & Pine Seattle Retail & Parking loan (CFCRE 2016-C6) transferred to special servicing in March 2026 without accompanying commentary and remained current in payment. The parking operator, SP Plus Corporation (“Standard Parking”), has a NNN lease scheduled to expire in October 2026, one month ahead of the loan’s November 2026 maturity, while property cash flows have struggled to consistently cover debt service. The loan is secured by a 361,650-sf condominium unit consisting of a 950-stall parking garage and 24,140 sf of ground-floor retail located in Seattle’s CBD beneath the Grand Hyatt Seattle hotel (COMM 2017-COR2, COMM 2018-COR3, JPMCC 2019-COR4), which serves as the collateral’s primary demand driver.

KCP reviewed its commercial mortgage-backed securities (CMBS) coverage universe and identified 11 properties securing eight loans—$4.2 billion by allocated loan amount (ALA)—across 14 transactions with exposure to Saks Fifth Avenue and Neiman Marcus closures announced in February and March 2026. In addition, KCP separately identified two lodging properties collateralizing two CMBS loans with exposure to closing Fifth Avenue Club locations.

In March 2026, SL Green announced that a global investment firm, later identified as The Carlyle Group, signed a 10-year lease at 245 Park Avenue (PRKAV 2017-245P, multiple conduits) for 150,036 sf (9%). The space, located on floors 23through 26, was previously leased to Angelo Gordon through February 2031, however the tenant was acquired by TPG in November 2023 and announced plans in November 2024 to lease over 300,000 sf in Hudson Yards, relocating from 245 Park Avenue and 888 Seventh Avenue. Given the new lease, we expect occupancy to remain at 98%. KCP highlighted additional leasing activity last month.

Round1 Bowling & Arcade has signed a lease for approximately 125,000 sf at Valencia Town Center (UBSCM 2013-C5). The venue is expected to open in early 2027 and is the first announced tenant tied to the property’s planned redevelopment, which was initiated following Centennial Real Estate’s acquisition of the mall in September 2023. The $186.6 million loan, secured by a 657,837-sf portion of a 1.1 million-sf regional mall in Valencia, CA, was first identified as a K-LOC in April 2022. Reported annualized September 2025 NCF for the collateral is down 60% since issuance and occupancy sits at 72%.

Brookfield Properties and Queensland Investment Corporation have listed Victoria Gardens (BFLD 2024-VICT) for sale as part of Brookfield’s ongoing strategy to dispose of retail assets in Southern California. Victoria Gardens, located in Rancho Cucamonga, CA, spans 1.2 million sf, of which 694,549 sf is collateral. The collateral portion reported an occupancy of 94% as of September 2025. Major tenants include AMC, Apple, Williams Sonoma, and P.F. Chang’s. The non-collateral anchors include Macy’s and JCPenney. The $265 million loan is scheduled to mature in July 2026 and has three 12-month extension options remaining.

KBRA Credit Profile (KCP) attended the CRE Finance Council’s (CREFC) annual High Yield, Distressed Assets, & Servicing Conference, held in New York City on March 10. The event attracted more than 300 commercial real estate (CRE) professionals and featured five panels along with a one-on-one discussion.

IPIC Theaters, LLC filed for Chapter 11 protection under Subchapter V in the Southern District of Florida on February 25. In a press release, IPIC stated that it intends to pursue a court-supervised sale while continuing operations at its 13 theaters, and it expects to have sufficient liquidity to complete an expedited sale and plan process. While IPIC indicated it plans to operate during the sale and restructuring process, WARN notices and related disclosures suggest that select locations could face closure absent a successful sale or lease resolution. KBRA Credit Profile (KCP) identified three properties securing three loans—$591.5 million by allocated loan amount—across 13 transactions that have exposure to IPIC tenancies.

The fourth-tallest office tower in New Orleans, Energy Centre (JPMCC 2013-C16), was refinanced with a new $61 million fixed-rate, five-year loan arranged by JLL on behalf of the borrower, Triangle Capital Group. The $51.4 million loan is secured by the 39-story, 757,275-sf, class-A office building in the CBD, which was 86% leased at the time of refinancing.

Twelve multifamily properties within the RISE Multifamily Portfolio (BX 2021-RISE) are expected to be refinanced with a new $900 million, five-year, floating-rate loan (BX 2026-RISE). Thirteen properties remain in the BX 2021-RISE pool. The 412-unit Cortland Arrowhead Summit property is not expected to be included in the refinancing and is being marketed for sale. The $1.2 billion loan was initially secured by 17 multifamily properties before multiple property releases in 2023 and 2024, which reduced the balance to $1.01 billion as of February 2026.

The KBRA Loan of Concern (K-LOC) Index was 27.00% in January 2026, down from 27.05% in December 2025. We identified 94 loans ($1.78 billion) as new K-LOCs in our conduit CMBS coverage universe in January. Conversely, we removed the K-LOC designation from 131 loans ($2.58 billion), including 34 ($936.7 million) that were liquidated in January.

The K-LOC Index for January 2026 is a composite of 3,173 K-LOCs with an aggregate unpaid principal balance (UPB) of $82.57 billion across 530 conduit transactions.