The Historic Art Deco Landmark, Once Santa Monica’s Tallest Building, Faces Foreclosure
The historic Santa Monica Clock Tower has been placed under court-appointed receivership after its owner, an affiliate of Rockwood Capital, defaulted on a $25 million loan secured by the property, according to a court order issued in October.
The lender’s special servicer, Rialto Capital, filed a lawsuit earlier this year seeking foreclosure and the appointment of a receiver after the landlord failed to repay a commercial mortgage-backed securities (CMBS) loan that matured in May. The loan, originally totaling $26.7 million, was assumed by Rockwood when it purchased the property six years ago.
Court documents show Cushman & Wakefield’s Brian Holmes has been appointed as receiver to oversee operations of the 12-story, 50,000-square-foot office building at 225 Santa Monica Boulevard. The property—an Art Deco landmark built nearly a century ago—was once Santa Monica’s tallest building and remains a recognizable feature of the city’s skyline, offering views of the Pacific Ocean.
Rialto Capital alleged that Rockwood defaulted when the loan matured without repayment, resulting in an outstanding balance of approximately $25 million. Rockwood consented to the receiver’s appointment in hopes of facilitating a potential sale, according to court filings.
The firm had previously expressed interest in transferring the property’s title back to the lender, according to Morningstar Credit commentary cited in the complaint.
Rockwood purchased the Clock Tower from Sorgente Group of America in 2018 for $58 million, but the building’s value has since dropped sharply amid weakening demand for office space. Morningstar data indicates the property’s estimated value fell to $27.4 million this summer—down from $49 million in 2015.
Occupancy has also plunged to 43 percent, reflecting broader struggles in Santa Monica’s commercial real estate market, where office vacancy rates have climbed to 25.8 percent, according to CBRE.
