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Brookfield has handed over the keys to its newest property in Downtown Los Angeles, the high-rise apartment tower The Beaudry. The 64-story Beaudry opened in 2023.
Brookfield told its lender this summer that, rather than refinance a $360M loan on the tower, it will walk away, The Wall Street Journal reported. Apollo-owned Bridge Investment Group, the lender on The Beaudry, is trying to sell the loan.
The decision “reflects entrenched market challenges facing downtown Los Angeles,” a Brookfield spokeswoman told the WSJ.
Downtown landlords are struggling to battle negative perceptions of the neighborhood and have been offering heavy concessions to get renters moved in, Bisnow has previously reported. The tower's 785 units are roughly 95% occupied and report rents of $4,200 a month, the WSJ reported. Those rents are high for Downtown but well below what Brookfield had targeted.
Brookfield's decision also likely reflects challenges in the capital markets. A refinance of the loan would have cost Brookfield “tens of millions in additional costs” because of higher interest rates, sources told the WSJ.
In the last few years, Brookfield had defaulted on loans on several other Downtown LA office properties and walked away from those as well. The developer sold FIGat7th, the open-air retail center The Beaudry overlooks, in the spring.
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