August 5, 2025 Breaking News, Latest News, and Videos

Brookfield Corp Defaults on $784M Worth of Loans for Two LA Towers

Brookfield fails to pay a $465 million loan package for the Gas Company Tower at 555 W. 5th St. and $319 million in loans for 777 S. Figueroa St.

A wave of defaults on office towers has hit downtown Los Angeles as demand for office space continues to decline. Brookfield Corp., a major office owner in the area, defaulted on $784 million worth of loans on two towers, according to an SEC filing on February 10th. And while these defaults are occurring far from the Westside, the fact that many corporate executives live in areas like Palisades and Santa Monica could be contributing to the decline of downtown in a work environment changed by a pandemic.   

Brookfield failed to pay a $465 million loan package for the Gas Company Tower at 555 W. 5th St. and $319 million in loans for 777 S. Figueroa St. The loan on the 52-story Gas Company Tower was comprised of a $350 million mortgage loan, a $65 million mezzanine loan and a $50 million junior mezzanine loan. The 52-story tower at 777 S. Figueroa St. was made up of a $269 million mortgage and a $50 million mezzanine loan.

This is not an isolated incident as other buildings have also faced foreclosure due to missed payments. In January, Oaktree foreclosed on Coretrust Capital Partners’ 48-story tower at 444 S. Flower St., which it had purchased in 2016 for $336 million with a Bank of China loan of $230 million that year. After missing the due date on its loan with Oaktree in 2021, Coretrust and Oaktree reached a forbearance agreement for Coretrust to pay by May 31 last year, but when they missed their payment, Oaktree initiated foreclosure proceedings.

Similarly, last year saw the Broadway Trade Center at 801 S. Broadway foreclosed upon as Starwood Capital acquired the building through public foreclosure auction after it defaulted on loans.

The pandemic’s shift towards remote work has caused demand for office space in downtown Los Angeles to plummet even further with vacancy rates hovering around 22%, according to Jones Lang LaSalle Inc.’s Q4 report from last year. Asking rents averaged out at $3.86 per square foot during this period while LA County had an asking rent of $4.14 per square foot.

As companies continue to embrace remote work policies post-pandemic, it remains uncertain how long it will take before demand returns to pre-pandemic levels or if businesses will permanently change their approach toward commercial real estate altogether.

“The office environment downtown is not appealing,” Shlomi Ronen, a managing principal and founder of Dekel Capital told the LA Business Journal. “I don’t know of a single company CEO who wakes up in the morning, has a home in Beverly Hills or in the Palisades or Pasadena and says my goal is to go spend my day living and working in downtown.”

<>Related Posts

(Video) Festival of Chariots Transforms Venice Beach Into a Showcase of Indian Culture

August 4, 2025

August 4, 2025

First held in Los Angeles in 1976, the festival draws inspiration from the ancient Jagannath Puri festival in India Festival...

Side-by-Side Beachfront Homes in Santa Monica  Hit Market for $23M Each

August 4, 2025

August 4, 2025

Designed with minimalist luxury, the residences showcase floor-to-ceiling glass walls and views of the Pacific Ocean Two modern beachfront homes,...

Lane Closures Set for Pacific Coast Highway This Week for Utility Work

August 3, 2025

August 3, 2025

The closure marks the third and final stage of constructing a new bridge at Corral Canyon Road, where Caltrans is...

Selling Sunset Star Close to Closing $30M Off-Market Deal for Kanye West’s Former Malibu Compound

August 3, 2025

August 3, 2025

Amanda Lynn Quietly Flips Kanye’s Abandoned Malibu Bunker Real estate agent Amanda Lynn, known for her on-screen presence in Selling...

Adult Great White Spotted Close to Shore in Santa Monica Waters

August 3, 2025

August 3, 2025

Shark Filmed Near Santa Monica Pier Just 50 Yards From Shore Rare footage of an adult great white shark swimming...

Heidi Klum’s Tropical Erewhon Smoothie Drops Just in Time for Summer

August 2, 2025

August 2, 2025

Supermodel’s Limited-Edition Drink Blends Kiwi, Coconut, and Matcha Erewhon has debuted its newest celebrity smoothie collaboration, this time with supermodel...

California Bolsters Firefighting Fleet Amid Federal Cuts

August 2, 2025

August 2, 2025

The transition, which began in 2020, equips the fleet with advanced technology, including a 1,000-gallon water capacity—nearly triple that of...

Big Blue Bus to Restore Service on Route to Palisades

August 2, 2025

August 2, 2025

The restoration is part of a broader summer service overhaul aimed at improving coverage across the Westside The Big Blue...

Fatal Crash Claims 9-Year-Old’s Life in Los Angeles

August 1, 2025

August 1, 2025

The driver of the vehicle remained at the scene and was arrested for driving under the influence A tragic traffic...

Malibu Hires New City Manager: Ronda Perez to Lead as City Eyes Recovery and Rebuilding

August 1, 2025

August 1, 2025

Veteran Public Administrator Ronda Perez Brings Nearly 20 Years of Experience to Malibu The Malibu City Council has voted unanimously...

Santa Monica Creates Film Office to Streamline Permitting and Production Services

August 1, 2025

August 1, 2025

New Agency Will Take Over From FilmLA After More Than a Decade Beginning September 1, 2025, film permit coordination in...

Santa Monica Pier Launches “PIERfect Benefit” Fundraiser Amid Recovery Efforts

August 1, 2025

August 1, 2025

The gathering will feature food, signature cocktails, live entertainment, and a program reflecting the Pier’s history and future. Proceeds will...

THIS WEEKEND: 49th Annual Festival of the Chariots to Roll Through Santa Monica and Venice

August 1, 2025

August 1, 2025

The festival site at Ocean Front Walk Plaza will transform into a lively showcase of Indian culture, expecting around 50,000...

Film Review: The Fantastic Four: First Steps

August 1, 2025

August 1, 2025

FILM REVIEWTHE FANTASTIC FOUR: FIRST STEPSRated PG-13115 MinutesReleased July 25th  The Fantastic Four: First Steps has a different aura from...

Aging Mindfully: Zen-Inspired Senior Living Takes Shape in Simi Valley

July 31, 2025

July 31, 2025

Two Zen-inspired senior living communities are embracing the reality of aging — consciously. Ensō Village, open since 2023 in Sonoma County,...