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 last appraisal put its value at $150 million compared to $446 million when the note was issued.
That happens to be more than what the office tower would have sold for had Carolwood’s deal closed; Adam Rubin and Andrew Shanfeld’s private equity firm was set to pay $130 million before it fell out of contract.
Who knows how much the debt will go for now. Downtown is still downtown: office vacancies are at about 33 percent and the return to work hasn’t revived the area.
Hotel on the block
Los Angeles hotels have also seen better days.
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 “borrower is in default under the loan and does not wish to continue operating the hotel,” court documents read, arguing that the hotel wasn’t making enough money.
But the plaintiff requested a dismissal and the court vacated earlier orders days before the notice of trustee’s sale, and the case is now closed.
Buyer wanted
Whole Foods’ Pasadena home is on the market for $75.7 million. But don’t worry, the luxe grocer and its cult favorite berry chantilly cake aren’t going anywhere. The decade left on its lease is a selling point, that and the “affluent” neighborhood that surrounds it, per the listing held by Newmark.
The seller, an entity connected to the Kutzer Company, purchased the 77,000 square foot property six years ago for $105 million from a private family trust as part of a five-parcel, off-market deal. Before that, it sold for $43.3 million.
If the Whole Foods-leased property at 465 South Arroyo Parkway sells, it’ll fetch more than recorded retail sales in Pasadena during the second quarter. The two priciest sales in Pasadena were the Pasadena Plaza, which sold for $42 million and the Pasadena Playhouse & Lofts, which sold for $9.5 million, according to a CBRE report.
Tiffany’s to Rodeo
You may see a robin-egg blue storefront on Rodeo in the coming years as French billionaire Bernard Arnault continues to bet on the opulent Beverly Hills corridor.
LVMH Moët Hennessy Louis Vuitton SE is planning to develop a new Tiffany & Co. shop on the site of an old Luxe Hotel at 360 North Rodeo Drive once it is demolished. Arnault’s conglomerate purchased the hotel for $200 million four years ago. The plans for the jewelry house call for a three-story building that spans 30,000 square feet and include a rooftop indoor-outdoor space.
Plus, LVMH submitted plans to build a big, new Louis Vuitton store — after voters voted against an earlier proposal for a hotel — and a ritzy campus on Rodeo Drive. Not to mention, a three-story Bvlgari store is opening next month.
LVMH has spent more than $900 million on 12 leased or owned stores on Rodeo Drive in recent years.
Read more
Can California real estate ever forgive its politicians?
Amgen plans $600M R&D facility at Thousand Oaks HQ
SEC renews 58K sf DTLA office lease amid DOGE cost-cutting efforts
