Carolwood's planned purchase of EY Plaza for $130 million collapsed after the servicer said it could not negotiate acceptable documentation with the selected buyer. The proposed sale price remained well below the $275 million CMBS debt tied to the 41-story building and below a recent $150 million valuation; the tower had been worth $446 million four years earlier. Rising Realty Partners' One California Plaza faces possible receivership after default on roughly $300 million of CMBS debt, with US Bank seeking appointment of a receiver. The 42-story Bunker Hill property was bought for $465 million eight years ago but now appraises near $121 million, and occupancy has fallen to about 63 percent.
Carolwood's deal to purchase EY Plaza for $130 million fell through. The office tower is coming back to market, a source familiar told The Real Deal. Servicer commentary indicated it was unable to negotiate acceptable documentation with the selected buyer, according to Morningstar. A month earlier, the special servicer said a buyer was selected, approvals were obtained, documentation had commenced and a closing was expected soon.
The sale to the Adam Rubin and Andrew Shanfeld-led firm still would have been less than the $275 million commercial mortgage-backed securities debt connected to the 41-story office building that was placed in receivership two years ago after Brookfield missed payments and less than the 900,000-square-foot office property's latest value: $150 million. The office tower was once valued at $446 million four years ago.
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