Creative Media receives maturity default notice on $97.1M Kaiser Plaza mortgage

Key facts

• Outstanding principal balance of $97.1 million as of the Form 8-K filing date
• Maturity date of July 1, 2026; default notice received July 9, 2026
• Loan originated June 30, 2016 by JPMorgan Chase Bank, National Association, to CIM/Oakland 1 Kaiser Plaza, LP (company subsidiary)
• Securitized as JPMCC Commercial Mortgage Securities Trust 2016-JP3; Wells Fargo Bank, National Association serves as Trustee
• Promissory Note A-1 original principal amount of $60,000,000; Promissory Note A-2 original principal amount of $37,100,000
• Default rate per annum equal to the lesser of (a) maximum legal rate or (b) five percent above the interest rate of four and fourteen one hundredths percent per annum
• Property rents, profits and income now property of Lender to be held in trust for Lender's benefit
• Company remains current on monthly interest payments; company evaluating options with special servicer for long-term resolution

Why it matters

The maturity default triggers an accelerated payment obligation on the company's largest single debt instrument and gives the securitized-loan trustee and special servicer control over rental income from the Kaiser Plaza asset; the company's ability to refinance or extend the loan will materially affect its debt restructuring and liquidity.

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