The $76 million Square One Mall loan (COMM 2012-LC4) transferred to special servicing ahead of its January 2027 maturity. The loan is secured by a 541,128 sf portion of a 928,667 sf super-regional mall in Saugus, Massachusetts, which was 74% occupied as of March 2026. The loan was previously modified in September 2021 to extend its January 2022 maturity by five years. Year-end 2025 NCF declined to $4.2 million from $6.6 million in 2024.

An updated appraisal received during the September 2026 remittance valued the collateral securing the $76.5 million Plaza America Towers III & IV loan (GSMS 2013-GC13) at $26.9 million ($57/sf), a 66% decline from the June 2023 appraisal of $80.0 million ($171/sf) and an 84% decline from the $167.0 million ($356/sf) issuance value. The collateral comprises two office buildings totaling approximately 469,000 sf in Reston, Virginia. Occupancy was 36% as of December 2025 following the July 2025 departure of Science Applications International Corporation (22% of GLA). The borrower has agreed to terms for a proposed discounted payoff, while the special servicer is concurrently pursuing a foreclosure sale scheduled for September 22, 2026.

The Harborplace loan (UBSBB 2013-C5) received a $16.8 million appraisal reduction amount (ARA) in September 2026, exceeding the $10.9 million balance of the B note and resulting in a $5.9 million ARA against the A note. The loan is secured by a 148,928 sf, two-building retail center in Baltimore, Maryland. KBRA highlighted the loan in a July 2026 credit alert after it transferred to special servicing following the borrower’s inability to repay the loan at its modified July 2026 maturity. The loan was reported as matured non-performing in September 2026, and the borrower has requested an additional maturity extension while pursuing a planned redevelopment of the property.

The KBRA Loan of Concern (K-LOC) Index was 27.24% in July 2026, up from 27.13% in June 2026. We identified 82 loans ($1.56 billion) as new K-LOCs in our conduit CMBS coverage universe in July. Conversely, we removed the K-LOC designation from 83 loans ($2.14 billion), including 15 ($674.2 million) that were liquidated in July. The K-LOC Index for July 2026 is a composite of 3,138 K-LOCs with an aggregate unpaid principal balance (UPB) of $81.46 billion across 538 conduit transactions.

Comcast Cable Communications Management LLC, the largest tenant at the property securing the $334.9 million 1407 Broadway loan (BBCMS 2019-BWAY), plans to relocate to 1540 Broadway as part of a consolidation. The tenant occupies 104,048 sf (9% of GLA) under a lease that expires in December 2028 with no termination options. The collateral is a 43-story, 1.1 million sf office and retail property in Midtown Manhattan that was 83% occupied as of June 2026.

The $13.8 million 1-3 West 125th Street loan (BANK5 2024-5YR11) became 30 days delinquent in August 2026, its first delinquency since issuance. The loan is secured by a 30,955 sf mixed-use office and retail property in Harlem, New York. Financials for the year ended December 2025 reported NCF that was down 17% from issuance, yielding a near-breakeven DSCR of 1.03. Vanderbilt Home Products (39% of GLA) vacated and discontinued operations at the property, triggering a lease sweep and activation of the loan’s lockbox, although the borrower indicated that the tenant, whose lease does not expire until March 2035, has subleased its space and remains current on its obligations.

The collateral securing the $34 million 811 Wilshire loan (COMM 2014-UBS6) is the subject of a proposed acquisition by the Los Angeles Community College District, which filed a Notice of Exemption related to the transaction in August 2026. The 336,190 sf, Los Angeles, California office building was 34% occupied as of March 2026. The loan failed to pay off at its November 2024 maturity and was subsequently transferred to special servicing. The property was previously under contract for sale in 2025, but the transaction was terminated. The most recent appraisal dated June 2026 valued the collateral at $40.5 million ($120/sf), down 40% from the issuance appraisal.

The REO asset, South Pointe Apartments (SGCMS 2016-C5), has been listed for sale by Berkadia. The 372-unit, garden-style multifamily property in Dallas, Texas was 22% occupied as of July 2026 and formerly secured a $21.9 million loan. The trust acquired the property with a $17.0 million credit bid at a February 2026 foreclosure auction after the loan failed to pay off at its December 2025 maturity. A January 2026 appraisal valued the property at $19.0 million ($51,075/unit) and a $5.4 million appraisal reduction amount (ARA) was subsequently assessed.

PC Connection renewed its 282,819 sf lease (70% of GLA) at Wilmington Ohio Industrial Park (BANK 2021-BN38) for seven years, according to the firm’s March 2026 10-Q. The lease, previously scheduled to expire in August 2026, was extended through August 2033, beyond the $11.5 million loan’s December 2031 maturity, and includes two five-year extension options and a $500,000 tenant improvement allowance. Dealertrack Inc. (30%), the collateral’s only other tenant, also had an August 2026 lease expiration. Servicer commentary indicates the borrower executed a lease amendment with Dealertrack, although the revised lease terms were not disclosed.

The $51.2 million Park Greene Apartments loan (FREMF 2021-KSG2) transferred to special servicing in August 2026 due to imminent monetary default. The loan is secured by a 349- unit garden-style multifamily property in Suitland, Maryland. Occupancy declined to 86% as of March 2026 from 94% as of December 2024, while year-end 2025 NCF of $2.2 million was 33% below the $3.3 million underwritten at issuance. Separately, a March 2025 fire damaged 22 units, which the borrower reported were expected to be rehabbed and ready for inspection by the end of June 2026.