Brookfield cedes defaulted Los Angeles office tower to receiver
BNN Bloomberg
Brookfield Corp. has handed over control of a second building this year in Los Angeles as the city’s downtown faces rising vacancies and falling office values.
EY Plaza, a 41-floor tower that opened in 1985, is now being managed by a receiver, according to a statement from brokerage Colliers, which is handling the building’s leasing and property management.
Brookfield stopped payments in April on the EY Plaza, which has US$305 million in total debt, including a US$275 million commercial mortgage-backed security. The Gas Company Tower, another Brookfield building in downtown LA, is also being managed by Colliers after it went into receivership.
The office vacancy rate in downtown Los Angeles reached a record 30 per cent in the first quarter, according to Savills, one of the highest of major U.S. city centers. Office prices in LA are forecast to fall as much as 55 per cent by 2030 from their pre-pandemic peaks, Boston Consulting Group reported this month.
