Pimco and the Witkoff Firm Default on Debt Linked to 249-Unit Park Santa Monica Complex
The Pacific Investment Management Company (Pimco) and the Witkoff Group have fallen into default on a loan topping $400 million tied to a luxury apartment complex in downtown Santa Monica, as reported by The Real Deal.
The delinquent debt is linked to The Park Santa Monica, a 249-unit residential property at 500 Broadway, Bloomberg and other real estate outlets reported.
A Witkoff representative told Bloomberg that Pimco holds 98.5% of the equity in the property and served as the primary capital partner overseeing investment decisions, while the Witkoff Group owns the remaining 1.5%.
County records show the project was financed with a $324 million loan in 2021 from affiliates of Mack Real Estate Credit Strategies, with the balance later increased to $405 million in November 2024. The note matured in July and had climbed to roughly $439.5 million as of last month when accrued interest and late charges were included. No reason for the default was disclosed in the public reporting.
Completed in 2022, The Park Santa Monica includes apartments and retail space and is marketed with amenities such as a rooftop park, pool, and fitness center. Studio rents begin around $4,000 a month, and three-bedroom units can reach roughly $19,000-plus, according to Bloomberg summaries.
The default lands amid broader stress in commercial real estate since interest rates rose in 2022, a shift that has driven more delinquencies and forced some owners to refinance at higher costs or face loan maturities.
The Witkoff Group was founded by developer Steve Witkoff, who has held a U.S. envoy role in the Trump administration and disclosed selling a $120 million stake in his firm to address potential conflicts of interest, according to reporting tied to his financial disclosure.
