"EY Plaza can't catch a break, or at least its lenders can't. It wasn't enough for a deal to purchase the distressed downtown office tower to fall apart, no, its value also took a hit. It's now worth about $135 million, down about 10 percent from its last valuation, according to Morningstar Credit. That's a significant drop from the $446 million it was once worth. It's becoming more apparent that Adam Rubin and Andrew Shanfeld's Carolwood dodged a bullet when its $130 million deal collapsed."
"The 900,000 square foot, 41-story, Class A office building at 725 S. Figueroa Street was placed in receivership two years ago, after owner Brookfield defaulted on $275 million commercial mortgage-backed securities debt. Once the deal drama played out, after The Real Deal reported the story, it was announced that Colliers, who replaced Eastdil, was marketing the $275 million non-performing loan connected to the property. Colliers made it clear that it anticipated the note to trade at discount."
EY Plaza's valuation fell to about $135 million, roughly 10 percent below its prior valuation and far below a former $446 million valuation. A planned $130 million purchase by Carolwood collapsed, reducing interest in the asset. The 900,000-square-foot, 41-story Class A tower at 725 S. Figueroa Street entered receivership after Brookfield defaulted on $275 million of CMBS debt. Colliers replaced Eastdil to market the $275 million non-performing loan and expected the note to trade at a discount, which likely hurt marketability. Separately, Rexford Industrial said it met with activist investor Elliott and reported third-quarter net income of $87.1 million, up from $65.1 million a year earlier.
Read at therealdeal.com
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