Catalyst Brands (Catalyst) is reportedly preparing to file for Chapter 11 bankruptcy protection related to Eddie Bauer’s North American store operations, a move that could result in the closure of approximately 200 locations. KBRA Credit Profile (KCP) reviewed its commercial mortgage-backed securities (CMBS) coverage and identified exposure to Eddie Bauer stores at 66 properties securing 66 loans—totaling $11.6 billion by allocated loan amount—across 132 transactions.

The $167 million 300 South Riverside Plaza Fee loan (MSBAM 2015-C22, MSC 2015-MS1) received updated commentary in January indicating the special servicing transfer in November 2025 was due to the leasehold tenant missing the October 2025 ground rent payment. The lender issued a notice of default in November 2025, accelerated the loan in December 2025, and retained counsel to dual track foreclosure while continuing workout discussions. The loan failed to pay off at its March 2025 ARD. The collateral is the leased fee interest beneath the 20 story, class A, 1.1 million sf office tower in Chicago.

The KBRA Loan of Concern (K-LOC) Index was 27.05% in December 2025, down from 27.32% in November 2025. We identified 91 loans ($1.75 billion) as new K-LOCs in our conduit CMBS coverage universe in December. Conversely, we removed the K-LOC designation from 94 loans ($1.37 billion), including 11 ($352.4 million) that were liquidated in December.

The K-LOC Index for December 2025 is a composite of 3,208 K-LOCs with an aggregate unpaid principal balance (UPB) of $83.4 billion across 530 conduit transactions.

The $3.03 billion floating-rate loan secured by The Cosmopolitan Las Vegas Resort & Casino (BX 2022-CSMO) is expected to be paid off as Blackstone has arranged a new $3.05 billion floating-rate, interest-only loan. The outstanding CMBS loan matures on June 9, 2026, and has one remaining one-year extension option available. The new financing is expected to be securitized in BX 2026-CSMO and includes a two-year initial term and three one-year extension options. The collateral is a 6.3 million sf, full-service luxury resort and casino on the Las Vegas Strip.

The borrowers of the $63.3 million Falls Houston Multifamily Portfolio loan (WFCM 2024-5C1) announced in January 2026 that they filed a motion to market the portfolio for sale, subject to the lender’s approval. Falls Management Group filed for Chapter 11 bankruptcy in November 2025 to stave off foreclosure. The marketing campaign was expected to commence in January 2026. The loan has been in special servicing since July 2025 after monetary default.

Empire State Realty Trust has listed the 543,743 sf 250 West 57th Street (BANK 2020-BN29, BANK 2020-BN30, BANK 2021-BN31) office for sale, with bids expected to be in the vicinity of $350 million ($644/sf). The $180 million interest-only loan carries a 2.83% interest rate and is locked out from prepayment until 2030, making a loan assumption a possible outcome.

OpenAI is reportedly in talks to lease between 27% to 33% of the 750,400-sf The Exchange (DROP 2021-FILE) office tower, now known as Icona: Labs at Mission Bay. Occupancy has been hampered in recent years by the sole tenant at issuance, DropBox, subleasing or negotiating termination agreements for portions of its space. The news comes shortly after one subtenant, Nudge, agreed to a direct lease for an additional 62,000 sf (8%) after subleasing 29,544 sf (4%) from DropBox last year. The $600 million interest-only loan is scheduled to mature in April 2026, with extension options through October 2033.

GameStop Corp. (GameStop) announced plans to shutter over 470 U.S. stores by January 31, 2026, the end of its 2025 fiscal year, as part of ongoing portfolio optimization efforts. KBRA Credit Profile (KCP), a division of KBRA Analytics, reviewed its commercial mortgage-backed securities (CMBS) coverage universe and identified 389 properties securing 358loans—$34.6 billion by allocated loan amount (ALA)—across 365 transactions with exposure to GameStop as a tenant.

In January 2026, 194 non-defeased loans ($2.93 billion) matured, of which 46.61% (61 loans; $1.37 billion) by unpaid principal balance (UPB) defaulted at maturity. The default rate for loans collateralized by office was 83.5%, followed by retail (46.89%), lodging (16.69%), and multifamily (0.9%). The paid-off cohort comprises 133 loans ($1.57 billion) with January maturities, including 68 ($863 million) that paid off ahead of schedule.

Total payoffs in January, regardless of original maturity date and excluding liquidations, amounted to $1.63 billion, including 34 loans ($320.6 million) that were previously defeased. Another 34 loans ($518.6 million) paid off ahead of their future scheduled maturities. Meanwhile, 12 loans with an aggregate UPB of $83.4 million were paid off late, but within 90 days of their scheduled maturity.

The borrower of the $215 million 681 Fifth Avenue loan (MSC 2016-UB12, CGCMT 2016-P6, CFCRE 2016-C7, CD 2017-CD3, CSMC 2016-NXSR) has appealed a New York Supreme Court judgement authorizing foreclosure on the underlying 82,600-sf retail and office building in Manhattan. The judgement sets total indebtedness at $261.9 million as of November 2025. The borrower’s appeal challenges the inclusion of compounded default interest and the assessment of default interest for July – November 2023. As covered by KCP in a June 3 credit alert, there has been ongoing litigation since January 2024 regarding workout plans following the loss of the former largest tenant, Tommy Hilfiger (27% of GLA, 78% of base rent), in 2023.