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amison Properties, Koreatown's largest office landlord, is facing foreclosure at Equitable Plaza due to a defaulted $86.5 million commercial mortgage-backed securities loan. The loan was tied to the 34-story office tower at 3435 Wilshire Boulevard and matured in June. According to Morningstar Credit, Jamison initiated talks with master servicer Wells Fargo Bank several months prior to the debt's due date, triggering special servicing in April.

    The property has been delinquent for six months, and occupancy has declined significantly since the COVID-19 pandemic. The building was 67% occupied in 2021 but now stands at 57%, according to Morningstar data. Two major tenants, Commonwealth Business Bank and Wilshire Business Center, are nearing the end of their leases, which will expire before the year's end.

    Jamison Properties acquired Equitable Plaza in the 1990s as part of a buying spree that seeded its Los Angeles empire, now valued at over $3 billion. The firm refinanced the property with a $95 million loan from German American Capital Corporation in 2014, but the deal began to unravel towards the end of the 10-year term. LNR Partners, the special servicer, is poised to initiate a UCC foreclosure following the October 7 default notice.