"Lenders are looking to sell the debt connected to the Brookfield-owned EY Plaza after a deal to purchase the distressed downtown office tower fell apart. Colliers peddled the $275 million non-performing loan in an offering memorandum, stressing a massive discount to note balance, while playing up what it called an iconic tower. The 41-story, 900,000 square foot property at 725 South Figueroa Street was placed in receivership two years ago after a debt default."
"The Hyatt House hotel, located on the University of Southern California's health sciences campus, is headed to a foreclosure auction. The Mayer Corporation, developer of the five-story, 200-key hotel at 2200 East Trojan Way, landed a $61.5 million refinancing loan from Westbrook Partners four years ago that it has since defaulted on. Entities connected to the Mayer Corporation and Westbrook Partners were in civil litigation after the lender requested a receiver be appointed to take possession of the hotel."
The Brookfield-owned EY Plaza faces a lenders' effort to sell a $275 million non-performing loan after a purchase deal collapsed and the tower entered receivership following a debt default. The 41-story, 900,000-square-foot property was last appraised at $150 million, down from $446 million when the note was issued, while a collapsed private equity purchase had been set at $130 million. Downtown office vacancies sit around 33 percent and return-to-work trends have not revived demand. Local hotels are also distressed: the Hyatt House at USC is headed to foreclosure after a $61.5 million loan default and related litigation was recently dismissed. Whole Foods' Pasadena store is listed for $75.7 million with a decade remaining on the lease.
#commercial-mortgage-debt #downtown-los-angeles-office-market #hotel-foreclosure #property-valuation-decline
Read at therealdeal.com
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