Brookfield’s urge for food for trophy buildings more and more looks as if the Achillies heel of its workplace portfolio.
After giving up two of its trophy towers in Downtown Los Angeles in receivership earlier this yr, the Canadian actual property big is handing again the keys to a lender on the historic Brill Constructing, the primary asset the corporate has surrendered in Manhattan.
Brookfield has transferred the deed to the Brill Constructing to Mack Actual Property Group in a switch valued at $216M, in accordance with a report from PincusCo.
The 11-story Brill Constructing, constructed through the Nice Melancholy, was residence to places of work and recording studios the place a few of the main musical acts of the 20th century reduce their tracks.
Brookfield acquired the Broadway landmark six years in the past in a UCC foreclosures with the switch valued at $213M. Mack acquired the mezzanine debt on the property from Financial institution OZK in 2019, in accordance with metropolis information disclosed by Pincus.
In February, Brookfield defaulted on two senior loans backed by the Fuel Firm Tower in DTLA totaling $350M in debt. The landmark tower, headquarters for the Southern California Fuel Co., is positioned at 555 West 5th Road.
The 54-story Fuel Firm Tower was positioned in receivership by the Superior Court docket after CMBS lenders Citi Actual Property Funding and Morgan Stanley filed a lawsuit asking the courtroom to nominate a receiver to pave the way in which for the sale of the property, in lieu of a chapter continuing.
In line with courtroom filings, the REIT did not repay the mortgage by the maturity date of Feb. 9 and it did not pay an advance of $3.6M in property taxes by April 10.
Brookfield additionally defaulted in February on $319M in loans for 777 South Figueroa St., also called the 777 Tower.
In April, Brookfield defaulted on a $161.4M mortgage backed by greater than a dozen workplace buildings, primarily within the DC market.
On the finish of Might, the identical receiver that was appointed by the Los Angeles Superior Court docket to supervise the receivership on the Fuel Firm Tower on the finish of April—Gregg Williams of Trident Actual Property—was once more tapped by the courtroom to deal with the receivership for EY Plaza, a 41-story tower at 725 S. Figueroa St.
In the beginning of Might, Trepp reported that Brookfield defaulted on a $275M mortgage backed by EY Plaza. The mortgage was originated in 2020 by Morgan Stanley and Wells Fargo after which bought to CMBS traders. The delinquent CMBS package deal features a $220M and a $35M mezzanine mortgage.
