The 417,383-sf office property securing the $134 million 1615 L Street loan (JPMBB 2013-C15, JPMCC 2013-C16) is under contract to be sold to Jemal Equities for $48 million ($115/sf), with closing expected in Q3 2026. The collateral is a 13-story, class-A office building in Washington, DC. The pending sale price is below the most recent October 2025 appraisal of $51 million ($122/sf) and marks a steep decline from the $213 million ($510/sf) issuance appraisal. The loan transferred to special servicing in September 2023 due to maturity default, and foreclosure proceedings began the following month. The property was 32% leased as of February 2026.

The KBRA Loan of Concern (K-LOC) Index was 26.72% in April 2026, down from 26.86% in March 2026. We identified 66 loans ($1.18 billion) as new K-LOCs in our conduit CMBS coverage universe in April. Conversely, we removed the K-LOC designation from 74 loans ($1.3 billion), including 15 ($266.8 million) that were liquidated in April.

The K-LOC Index for April 2026 is a composite of 3,162 K-LOCs with an aggregate unpaid principal balance (UPB) of $82.31 billion across 539 conduit transactions.

The property securing the $240.0 million 79 Fifth Avenue loan (CGCMT 2022-GC48, multiple conduits) has signed two new office leases, backfilling the 14th and 15th floors vacated by Hulu (formerly 12%) in May 2025. Following the tenant’s departure, occupancy at the 345,751-sf New York City office building declined to 88%. KCP

research indicates that Novig, a peer-to-peer sports prediction market and betting exchange, and Verkada, a cloud-based enterprise physical security platform, signed 10-year leases commencing in August 2026 for approximately 6% of the GLA each. However, leasing risks remain elevated, as Capgemini America, which currently leases 19% of the GLA under two leases expiring in January and September 2027, has reportedly signed a lease at Penn 2 and plans to vacate 79 Fifth Avenue.

The $63.4 million 360 Independence loan (AREIT 2024-CRE9) appears to have achieved a key component of its business plan following the renewal of Reckitt Benckiser LLC, the property's sole tenant (100% of GLA). According to updated investor reporting, Reckitt extended its lease at the 812,425-sf warehouse and distribution facility in Mechanicsburg, PA through April 2031 from April 2026. At issuance, the sponsor's business plan contemplated renewing the tenant at lease expiration and marking rents to market, supported by a $5.4 million future funding commitment for tenant improvement and leasing costs.

In May 2026, 117 non-defeased loans ($2 billion) matured, of which 55.58% (81 loans; $1.11 billion) by unpaid principal balance (UPB) paid off at maturity. This cohort includes 31 loans ($363.4 million) that were paid off ahead of schedule. Meanwhile, 44.42% (36 loans; $886.5 million) defaulted at maturity, though some may have previously been in payment default or in special servicing. The default rate for loans collateralized by retail was 68.04%, followed by office (61.79%), multifamily (20.35%) and lodging (9.51%).

KCP adjusted its KPO for the $33.0 million 111 West 19th Street loan (BMO 2024-5C3) to Underperform from Perform due to elevated lease rollover and occupancy concerns. The loan is secured by a 189,731-sf, class-B office property in Manhattan, which reported 100% occupancy as of December 2025. KCP questions the reported occupancy given the lack of disclosed replacement tenants for the space formerly occupied by The Barbarian Group (12% of GLA), which vacated its 23,000-sf seventh floor space in June 2024. Additional rollover pressure stems from Clay (24%), which reportedly signed a 10-year lease for 163,000 sf at 11 Madison (MAD 2025-11MD) ahead of its December 2027 lease expiration, while NFE Management LLC (12%) remains on a month-to-month lease. Occupancy could decline to approximately 52% if both tenants vacate.

The anticipated sale of the $37.4 million Valley West Mall loan (MSBAM 2013-C7) has fallen out of contract after the prospective buyer, the City of West Des Moines, and JCPenney failed to reach an agreement for the tenant to vacate the property. The loan is secured by an 856,428-sf regional mall in West Des Moines, IA, and is the largest remaining asset in the transaction, representing 79.6% of the current deal balance. A $13.1 million bid was accepted in July 2025, with closing was expected in early Q2 2026. The key hurdle remains JCPenney, which does not want its operations disrupted and could block demolition and redevelopment until 2032 if it exercises its remaining five-year extension option.

The $17.7 million Air Buffalo loan (FREMF 2024-K520) transferred to special servicing in May for delinquency. The loan is secured by a 154-unit student housing property in Amherst, NY, approximately one mile from the University at Buffalo campus. The loan first became 30 days delinquent in February 2026 and was most recently reported as 60 days delinquent as of May.

Twelve of the 43 properties (10,965 units) that secure the $1.53 billion Blackstone - Cornerstone Affordable Housing Portfolio loan (BX 2022-AHP) are set to be refinanced through the forthcoming BX 2026-AHP transaction. The new $600.0 million floating-rate, interest-only loan will be secured by 3,387 units across Miami, West Palm Beach, and Tampa, with nearly all units income-restricted. Proceeds are expected to retire $499.6 million of the existing loan balance tied to the 12 properties, cover closing costs, and return approximately $94.8 million to Blackstone. The existing loan reaches its fully extended maturity date in January 2027.

The collateral securing the $62.5 million Shadow Lake Towne Center loan (BMO 2023-5C2) was sold in May 2026 to DRA Advisors and DLC Management for approximately $94 million ($177/sf), which is above the issuance appraisal value of $92.7 million ($174/sf). The property is a 531,557-sf anchored retail center in Papillion, NE, approximately 10 miles southwest of Omaha. The property was 89% leased as of December 2025, with major tenants including Dick’s Sporting Goods (9% of GLA), Burlington (7%), and TJ Maxx (6%). NCF for the year ended December 2025 was approximately 14% above underwritten assumptions and 18% above 2024 levels.