The $275M note connected to EY Plaza is for sale following the collapse of a deal to sell the property to Carolwood.

An offering memorandum stated the note is expected to trade at a “massive discount,” The Real Deal reported. The loan is currently classified as nonperforming, and Colliers has replaced Eastdil Secured in marketing the deal, according to the memorandum, which was reviewed by TRD.

The 41-story office tower was put in receivership after debt default, TRD previously reported. The Brookfield entity that owned EY Plaza handed the keys over to lenders in 2023.

A 2024 appraisal valued the 900K SF property at $150M, a steep drop from the $446M appraisal it received when the debt was issued four years prior.

A deal for Aon Center owner Carolwood to buy the property was in progress but fell through, TRD had previously reported.

The namesake anchor tenant for the property, consulting firm EY, occupies 120K SF in the building.

The Downtown Los Angeles office market has seen values drop precipitously in the last few years. The Wedbush Center, set to lose its namesake anchor tenant by the end of the year, saw its value drop 70% this year in comparison to a 2018 valuation.