Weeks ago The Real Deal broke the story that a deal to sell the Brookfield-owned EY Plaza to Adam Rubin and Andrew Shanfeld fell through, putting the non-preforming loan tied to the 920,000-square-foot tower back on the market.
Then came our scoop that a deal for 811 Wilshire also fell out, leaving Jamison in default and facing foreclosure on the 337,000-square-foot property.
There’s no telling what next week will bring — you’ll just have to stay tuned to TRD, as usual — but it does appear that local Jamison is in better shape than global Brookfield as far as the two downtown L.A. property values go. The debt connected to 811 Wilshire stands at about $35 million, compared to the original $39 million note that matured and moved to special servicing last year. Jamison bought the property in the early 2000s for $26.5 million. It was valued at $68 million when the current loan was originated in 2014, and it’s been appraised at $40.5 million more recently.
EY Plaza, on the other hand, fell out of its deal with Carolwood at $130 million. That explains why the $275 million note on the property is being marketed at a discount.
Backup plan for Original Pantry?
Leo Pustilnikov of Builders Remedy fame — AKA the guy who beat the Beverly Hills NIMBY crowd — might have a backup plan if his out-of-blue buy of the Original Pantry just up Figueroa from LA Live leaves him disenchanted with the restaurant business.
Pustilnikov told KABC Radio’s Frank Mottek on the day of his reported $5.5 million deal for the recently shuttered restaurant — a longstanding asset in late Los Angeles Mayor Richard Riordan’s portfolio — that it’s a pure dining play.
“It’s coming back, the workers are coming back, the Pantry is coming back,” touted the eclectic Pustilnikov, who also has significant holdings of commercial real estate from Huntington Beach to Skid Row.
Pustilnikov can look about a block away for a different potential for the prime location the Original Pantry occupies at 9th Street and Fig — and note that 9th Street is known as James M. Wood Boulevard for a stretch just east of Figueroa. By any name, however, Pustilnikov can hardly miss the 2.3-acre open patch of land at 9th and Francisco streets, especially now that it’s got a price tag of $100 million.
The land, owned by nonprofit Salvation Army, spans 832 and 900 James M. Wood Boulevard and 916 and 927 Francisco Street, plus another commercial parcel. It’s near LA Live, two Marriott-branded hotels, the Grammy Museum and Los Angeles Convention Center.
Douglas Elliman’s Catherine Bassick holds the private listing that is described as entitled to become a “skyline-defining landmark,” in sales materials. There’s no height limit, so that could be true.
The land could become a mixed-use residential tower with retail space and rooftop amenities, or a hotel or a creative campus for corporate headquarters, if the buyer goes with any of the scenarios laid out in the sales materials.
About that bonus
A couple months ago, Hudson Pacific Properties announced it was cutting two board members, who the company said voluntarily resigned.
“This more efficient board structure maintains the experience needed to guide our management team while contributing to our ongoing focus on corporate costs to drive value creation for shareholders,” chief executive and chairman Victor Coleman said.
That’s the same Coleman who made about $25 million in total compensation, a substantial boost compared to the $8 million or so he made the year before. As The Real Deal previously reported, his base salary remained at $1 million, but his discretionary and non-discretionary cash bonuses and stock awards increased to encourage retention, stockholder alignment and stock price recovery. His stock awards were valued at about $22 million. That was despite ballooning losses that have only continued to mount and shares trading under $3.
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