Bank OZK assumes control of a three-parcel, 65,000-square-foot creative office cluster in Santa Monica after Redcar Properties defaults on a $65 million loan.
Bank OZK has taken control of a three-parcel creative office cluster in Santa Monica, California, following a default by developer Redcar Properties. The portfolio includes 1650 Euclid Street, a three-story, 65,000-square-foot office building, along with two adjacent parcels at 1620 and 1630 Euclid Street. Bank OZK had provided a $65 million construction loan for the project in 2022, but the debt matured in January 2026 with approximately $50.1 million still outstanding.
The lender has recorded a $5.7 million charge-off related to the non-performing loan, citing the borrower's unwillingness to provide further financial support. The office complex, which was delivered in 2024, has struggled with lease-up, reporting roughly 15% occupancy as of late 2025. Bank OZK is currently evaluating marketing opportunities for the assets, though the bank has indicated it will pursue acquisition of the title if marketing efforts fail.
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