Los Angeles sees 4 downtown office skyscrapers in distress with billions in defaulted loans, bids expected far below debt balances. Manufacturing & CRE Construction spend peaked over a year ago

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“4 distressed office buildings in Los Angeles, California.

Brookfield and its lenders (and receivers and special servicers) are peddling four active offerings that total about 4.9M SF of Class A office space in the Financial District, roughly 18% of the total inventory.

EY Plaza: Colliers is marketing the $275M, non-preforming note tied to the property at 725 South Figueroa Street, in receivership. That note is expected to trade at a massive discount.

Bank of America Plaza: Colliers is shopping the defaulted CMBS loan connected to the skyscraper at 333 South Hope Street, in receivership. The debt balance is $400M and the brokerage anticipates substantially discounted bids.

Wells Fargo Center’s North Tower: Eastdil Secured is marketing the mortgage loan on 333 South Grand Avenue, which includes an office tower and a retail asset. The roughly $506M debt on the property is in default, though it is not in the hands of a receiver. Bids are anticipated around $196M.

Wells Fargo Center’s South Tower: Newmark is shopping the skyscraper — a sister to its sibling to the north — at 355 South Grand Avenue. Bids are anticipated to come in around $157M, not enough to cover the $263Mdebt balance that came due.

-TheRealDeal
#commercialrealestate”

 

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