Troubled CMBS Loans Swell to Near Highest Since Covid Shakeout

When three Seattle office buildings a short distance from Amazon.com Inc.’s headquarters defaulted on $135 million worth of commercial mortgage debt last month, it left bond investors who financed the properties facing a long and uncertain slog to claw back money.

The buildings, owned for years by developer Martin Selig, became the latest additions to a pile of soured business property loans that is now as large by some measures as it was during the pandemic.

“A lot of defaults during Covid are still not fully resolved, and loans that were modified or extended during the 2022 interest rate ...