Redcar Properties has turned over a trio of Euclid Street creative office buildings in Santa Monica to its lender, Bank OZK, after a construction loan went sideways. The cluster includes 1650 Euclid and the linked parcels at 1620 and 1630 Euclid, and loan filings show roughly $50.1 million still outstanding. Bank OZK has already logged losses on the deal and is now weighing whether to market the property or formally take title itself.
Deed in Lieu Shifted the Euclid Parcels to the Bank
According to The Real Deal, a deed in lieu of foreclosure recorded in late March shows Redcar handing the Euclid properties back to Bank OZK. The outlet reports the bank made a $65 million construction loan on the project in 2022, with the loan maturing in January 2026. The recently developed 1650 Euclid is a three-story, 65,000-square-foot creative office building.
Bank OZK's Filings and the Charge-Off
Bisnow reported that Bank OZK took a $5.7 million charge-off on the loan, leaving an outstanding balance of about $50.1 million. In filings quoted by The Real Deal, the bank said the borrower indicated it would stop providing further financial support and that the loan was past due. The filing added, "We are pursuing opportunities to market this asset. If those efforts are unsuccessful, we will move to acquire title to the property."
Santa Monica's Office Market Is Testing New Buildings
Local leasing data has Santa Monica among the softest office submarkets in the region, with high availability that has left freshly delivered creative projects exposed. A Commercial Observer report citing Avison Young put Santa Monica's total office availability near 28 percent in late 2025, a level that can make lease-up and refinancing particularly tough for smaller owners.
What Comes Next for the Euclid Buildings
Redcar's 1650 Euclid delivered in 2024 and, according to market reports, was only lightly leased when its financing came due. Bisnow noted the project was about 15 percent leased at the end of 2025, leaving Bank OZK to either shop the mostly vacant asset or move to take title and reposition it. Redcar illustrates the Euclid buildout on its project page and includes the property among its recent Santa Monica developments.
