Monitor for foreclosure proceedings, deed-in-lieu of foreclosure, or restructuring discussions with the special servicer. Watch for potential contagion to other CMCT mortgage obligations and any impact on the company's ability to maintain Nasdaq listing given the size of this default relative to its equity base.
Price Chart
Executive Summary
Creative Media & Community Trust Corporation received a notice of maturity default on its non-recourse mortgage for 1 Kaiser Plaza, with an outstanding principal balance of $97.1 million that matured on July 1, 2026. The company elected not to invest additional capital to refinance, and the lender has demanded immediate full repayment and taken control of all property rents and income. This default represents a massive obligation relative to the company's ~$8 million market capitalization.
Key Facts
- Received default notice on $97.1 million non-recourse mortgage secured by 1 Kaiser Plaza
- Loan maturity date was July 1, 2026; company elected not to invest capital to refinance
- Lender demanded immediate payment in full of outstanding principal plus all accrued interest
- All rents, profits, and income from the property now belong to the lender and must be held in trust
- Default interest rate set at the lesser of the maximum legal rate or 9.14% (5% above 4.14%)
- Company remains current on monthly interest payments but is in default on principal repayment
- Market capitalization of CMCT is approximately $8 million, making the $97.1 million loan over 12x market cap
Financial Impact
The $97.1 million mortgage default far exceeds the company's $8 million market cap. The company loses cash flows from the property and faces potential foreclosure or deed-in-lieu, likely resulting in a substantial impairment charge.
Risk Factors
- Foreclosure on the 1 Kaiser Plaza asset with total loss of equity
- Potential cross-default triggers on other company debt obligations
- Going-concern risk given the massive debt-to-market-cap imbalance
- Loss of property-level cash flows and potential impairment charges affecting reported earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000908311-26-000077 |
| Document: 0000908311-26-000077-index-headers.html | 0000908311-26-000077 |
| Document: 0000908311-26-000077-index.html | 0000908311-26-000077 |
| Document: 0000908311-26-000077.txt | 0000908311-26-000077 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | 8-K | $2.67 $2.40 | ▲ +10.11% | ▲ +9.89% | $3.62 (−35.58%) |
Aug 14, 2026 7w ago | 8-K | $4.74 $5.25 | ▼ −10.76% | ▼ −12.13% | $3.62 (+23.63%) |
Jul 15, 2026 11w ago | 8-K | $2.66 $2.55 | ▲ +4.14% | ▲ +2.46% | $3.62 (−36.09%) |
Jun 17, 2026 15w ago | 8-K | $3.98 $3.25 | ▲ +18.34% | ▲ +16.68% | $3.62 (+9.05%) |
US Market Status
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