An $87 million CMBS loan tied to the Pinnacle II office building in Burbank was transferred to special servicing on Dec. 30, 2025, putting lenders and servicers on the clock as the debt heads toward a June 2026 maturity. The six-story office property at 3300 W. Olive Ave., roughly 225,000 square feet, is majority-owned by Blackstone and Worthe Real Estate Group and has been largely empty since Warner Bros.' lease rolled off in 2022. A single, undisclosed tenant is expected to take about 60,000 square feet around mid-2026, which would still leave a large chunk of the building without a committed occupier as the payoff date approaches.
According to Bisnow, Morningstar data shows the loan was moved to special servicing on Dec. 30, 2025, for "imminent monetary default." Servicer commentary cited in that report notes, "The loans mature in June 2026," a reminder that decision time on modification, extension, or enforcement is coming fast.
A prospectus filed with the Securities and Exchange Commission traces the financing to a 2016 whole-loan structure with an original principal balance of $87,000,000 and a contractual maturity in June 2026. That SEC filing confirms the debt was securitized in a CMBS structure, which shapes what the special servicer can and cannot do and outlines the typical playbook for resolving a troubled loan.
Worthe’s marketing materials list Pinnacle II at about 230,000 square feet at 3300 West Olive Ave., and the Los Angeles Times reported that Blackstone acquired a majority stake in the six-property Burbank Media District portfolio in 2017. Worthe continues to manage the complex alongside Blackstone, and the property sits in the heart of Burbank’s media-office cluster, where demand has been uneven as entertainment companies rethink how much space they really need.
Why lenders are watching
Special servicing generally signals that loan payments or covenant timelines are at risk and that lenders are gearing up to consider workouts, enforcement, or other remedies. Industry data shows office loans have driven much of the recent uptick in special-servicing transfers heading into 2026. Trepp’s market commentary on special-servicing trends points to persistent strain in office-backed CMBS, and recent regional moves in the entertainment space, such as the Radford Studio Center shifting toward lender control when occupancy and cash flow weakened, highlight how quickly studio and media assets can change hands when the numbers stop working, as reported by The Real Deal.
What comes next for Pinnacle II
With a June 2026 maturity in sight, the borrower, special servicer, and CMBS certificateholders are expected to weigh options that could include refinancing, amending terms, or arranging a payoff in the coming months. A 60,000-square-foot lease would give the building some much-needed income but would fall short of fully stabilizing the asset. Bisnow reports that Worthe representatives did not respond to requests for comment and that Blackstone declined to comment on the special-servicing transfer.
For Burbank landlords and local office brokers, the move is another sign that loan maturities and major tenant departures are setting the tone for legacy office debt across the region. How quickly Worthe and Blackstone can fill vacant space or line up new financing will determine whether the Pinnacle II loan works its way back to regular servicing or stays parked with the special servicer until a longer-term fix lands.
