Maxxam Secures Extension on $90M CMBS Debt in Santa Monica
The debt from Deutsche Bank is tied to a mixed-use complex that has struggled to maintain occupancy since debt issuance, per KBRA
By Nick Trombola February 20, 2026 1:50 pm
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Some prominent landlords have struggled to rein in property debt in Santa Monica, Calif., in the post-pandemic era, but at least one has managed to secure a new lease on life on the popular Third Street Promenade.
Beverly Hills-based Maxxam Enterprises secured an extension on a $90 million commercial mortgage-backed securities (CMBS) package tied to Promenade Gateway, a seven-story, mixed-use complex at 1453 Third Street Promenade in Downtown Santa Monica. The debt’s new maturity date is December 2028.
Deutsche Bank and its subsidiary German American Capital led the CMBS origination in 2016. The loans were scheduled to mature in December 2025, but Maxxam transferred the debt to special servicing in September ahead of maturity to explore extension options.
The roughly 126,000-square-foot property features a mix of multifamily, office and retail spaces. Yet despite its proximity to the Pacific Ocean and a 2019 renovation, the property has struggled to maintain consistent occupancy since debt issuance, according to KBRA commentary. WeWork canceled its lease at Promenade Gateway in late 2023 in the wake of its bankruptcy, and AMC Theaters did not renew its lease at the complex in late 2024.
Representatives for Maxxam and Deutsche Bank did not immediately respond to requests for comment about the debt extension.
Other landlords in Santa Monica have struggled since the pandemic. Late last year, Witkoff and Pacific Investment Management Company (PIMCO) defaulted on more than $400 million in debt tied to The Park Santa Monica, a 249-unit luxury apartment building just two blocks east of Promenade Gateway. Two months prior, Rockwood Capital’s historic Santa Monica Clock Tower Building was placed in court-appointed receivership after the firm defaulted on nearly $27 million tied to the 12-story tower.
The beleaguered Santa Monica Place mall across the street from Promenade Gateway saw its value plummet by nearly 60 percent in late 2024 in the wake of former owner Macerich’s default on the property earlier that year. Santa Monica Place is currently managed by Prism Places and court-appointed receiver Trigild.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
