The workout strategy for the $50.6 million 1670 Broadway loan (UBSCM 2018-C13, UBSCM 2018-C14) shifted from modification to full payoff, according to July 2026 investor reporting. The loan is secured by the borrower’s fee simple and leasehold interests in a 703,654-sf, class-A office tower in Denver, Colorado. According to special servicer commentary, the borrower requested a short-term forbearance to negotiate a lease buyout with TIAA, the property's largest tenant (33% of GLA), which is expected to begin vacating the building in August 2026, before repaying the loan in full. The loan transferred to special servicing after failing to pay off at its modified September 2025 maturity date.

The $280 million CALI 2024-SUN loan (CALI 2024-SUN) transferred to special servicing and was designated matured non-performing after failing to pay off at its July 2026 maturity. The loan is secured by two full-service luxury hotels totaling 327 keys in Santa Monica, California. Although the loan included three successive one-year extension options through July 2029, special servicer commentary indicated that the borrower was unable to satisfy the extension conditions outlined in the loan documents. The portfolio was 66% occupied as of December 2025, while year-end December 2025 financials reflected a below-breakeven DSCR.

An updated April 2026 appraisal valued the collateral securing the $598.6 million BMR Pool loan (LIFE 2021-BMR) at $648.7 million ($767/sf), down 38% from the $1.05 billion ($1,239/sf) issuance appraisal and in line with KCP’s concluded value. The loan is secured by six office and laboratory properties totaling approximately 846,000 sf across Boston, San Diego, and San Francisco. The loan transferred to special servicing in February 2026 and was subsequently modified to extend its maturity to March 2027, with two additional one-year extension options through March 2029. Occupancy declined to 75% as of September 2025 and will be further stressed as Genpharm (30% of GLA) is expected to vacate prior to its March 2027 lease expiration.

The $67.5 million Harborplace loan (UBSBB 2013-C5) transferred to special servicing during the July 2026 remittance period due to imminent maturity default, after the borrower indicated it would be unable to repay the loan at its July 2026 maturity. The loan is secured by the borrower’s leasehold interest in a 148,928 sf, two-building retail center in Baltimore, Maryland. The borrower requested an additional extension, and the special servicer has initiated discussions. The loan was assumed and modified in June 2023, at which time the debt was bifurcated into an A/B structure and the maturity date was extended to July 2026.

The $19.6 million Embassy Corporate Park loan (CGCMT 2016-GC36) received an updated April 2026 appraisal value of $17.3 million ($43/sf), a 46% decline from the $32.3 million ($81/sf) issuance appraisal. The loan is secured by the borrower’s fee simple interest in a seven-building, 399,214-sf office portfolio in Ohio, comprising six properties in Fairlawn and one in Canton. The loan transferred to special servicing in March 2026 after failing to repay at its January 2026 maturity. The lender is pursuing foreclosure while continuing workout negotiations, and servicer commentary indicates that the borrower is exploring a global bond execution, JLL-led portfolio refinance, or a potential portfolio sale to satisfy the debt. Occupancy declined to 59% as of February 2026 from 79% at issuance.

The $104.0 million Sentinel Square II loan (FIVE 2023-V1, BBCMS 2023-C19, BMARK 2023-B38) was modified to extend the maturity date to December 2028 from December 2027. The modification also revised the DSCR and trigger period definitions, while monthly rollover reserve deposits remain. The loan is secured by a 283,915 sf, class-A office building in Washington, DC, which was 94% occupied as of March 2026. Despite stable occupancy, NCF remained below underwritten expectations at $7.8 million for both the years ended December 2025 and December 2024, approximately 17% below $9.4 million at issuance.

July 2026 investor reporting indicated that four assets were sold and released from the $304.4 million HBS Portfolio loan (HBCT 2015-HB10, HBCT 2015-HB7). The sales generated approximately $74.6 million of net proceeds, which were applied to the HB10 component, and included Fashion Center, Fashion Show Mall, King of Prussia Plaza, and North Star Mall. The remaining collateral consists of 21 retail properties totaling approximately 2.7 million sf, including 13 former Lord & Taylor locations and eight Saks Fifth Avenue stores. The sales follow the release of the Eastchester property, as reported in a May 14 Credit Alert, and further advance the special servicer’s orderly liquidation of the remaining collateral. June 2026 servicer commentary confirms that title for the remaining assets was transferred to the trust.

Netflix is under contract to acquire Radford Studio Center, the collateral securing the $395.2 million CBS Studio Center loan (SHOW 2022-BIZ), for a reported $400 million. The reported price is well below the approximately $1.85 billion ($1,615/sf) Hackman Capital Partners paid for the 1.1 million-sf Los Angeles studio property in 2021. The update follows KCP’s April 27 credit alert, which discussed earlier reports that Netflix was in talks to buy the asset for between $330 million and $400 million. The pending transaction follows the loan’s June 2025 maturity default and multiple unsuccessful extension and modification attempts.

The KBRA Loan of Concern (K-LOC) Index was 26.94% in May 2026, up from 26.72% in April 2026. We identified 54 loans ($1.12 billion) as new K-LOCs in our conduit CMBS coverage universe in May. Conversely, we removed the K-LOC designation from 74 loans ($1.09 billion), including nine ($166.2 million) that were liquidated in May. The K-LOC Index for May 2026 is a composite of 3,142 K-LOCs with an aggregate unpaid principal balance (UPB) of $82.19 billion across 538 conduit transactions.

The $49.5 million, 351-key Hyatt Regency Savannah, part of the collateral for the $555.3 million Ashford Highland Portfolio loan (AHT1 2018-ASHF), was sold in July 2026 to Certares Real Estate Management and Clearview Hotel Capital for an undisclosed price and is expected to be released in the near term. The full-service hotel represented 8.9% of the portfolio’s allocated balance as of the June 2026 remittance. KCP previously identified the sale of the 254- key Hilton Garden Inn Austin Downtown, which is also expected to be released in the near term. Following the releases of the sold properties, the portfolio will comprise 4,205 keys.