{"id":49640,"date":"2026-05-25T09:35:24","date_gmt":"2026-05-25T06:35:24","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=49640"},"modified":"2026-05-18T09:47:40","modified_gmt":"2026-05-18T06:47:40","slug":"bank-ozk-distressed-euclid-street-office-santa-monica","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/bank-ozk-distressed-euclid-street-office-santa-monica\/","title":{"rendered":"Bank OZK Takes Hold of Distressed Santa Monica, Calif., Creative Office"},"content":{"rendered":"

Redcar Properties has turned over a trio of Euclid Street creative office spaces in Santa Monica, Calif.<\/a>, to its lender, Bank OZK, after defaulting on a development loan. The hand-over includes 1650 Euclid and two other parcels (1620 and 1630 Euclid), which were lot-tied to the three-story, 65,000-square-foot building, granting the lender control of the entire Euclid Street cluster.<\/p>\n

Bank OZK issued a $65 million construction note for the project in 2022, but recent filings show approximately $50.1 million remains outstanding on the debt. According to Securities and Exchange Commission filings, the loan reached its maturity date in January 2026.<\/p>\n

The lender had already recorded a $5.7 million charge-off related to the non-performing loan, noting that the borrower had \u201cindicated unwillingness to continue financial support for the project and the loan is now past due.\u201d<\/p>\n

Regarding its next steps, the bank stated in a financial filing: \u201cWe are pursuing opportunities to market this asset. If those efforts are unsuccessful, we will move to acquire title to the property.\u201d<\/p>\n

The 1650 Euclid project was delivered in 2024, but struggled with low occupancy as the financing came due. Market reports from the end of 2025 noted the development was only about 15% leased.<\/p>\n

The situation reflects broader distress in the Santa Monica office submarket, which is currently ranked among the softest in the region. Specifically, local leasing data shows that total office availability in Santa Monica hovered near 28%<\/a> in late 2025. This high level of vacancy has made it increasingly difficult for smaller owners to secure refinancings or complete lease-up phases for newly delivered creative office projects.<\/p>\n

Despite the transfer of control to the bank, Redcar continues to feature the Euclid buildout on its website as part of its recent developmental portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"

Redcar Properties has turned over a trio of Euclid Street creative office spaces in Santa Monica, Calif., to its lender, Bank OZK, after defaulting on a development loan. The hand-over includes 1650 Euclid and two other parcels (1620 and 1630 Euclid), which were lot-tied to the three-story, 65,000-square-foot building, granting the lender control of the entire Euclid Street cluster.<\/p>\n","protected":false},"author":56,"featured_media":49642,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[37,38,4014,39],"tags":[],"class_list":["post-49640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate-news","category-deals","category-featured","category-office","wpautop"],"acf":[],"yoast_head":"\nBank OZK Gets Hold of Distressed Office Asset | CommercialCafe<\/title>\n<meta name=\"description\" content=\"Redcar Properties has turned over a trio of Euclid Street 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