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Brookfield's Gas Company Tower, one of a handful owned by Brookfield's Downtown LA office-focused fund, has gone into receivership.
Citi Real Estate Funding and Morgan Stanley, commercial mortgage-backed securities lenders for $350M in debt on the property, filed a lawsuit last week in Los Angeles County Superior Court asking the court to appoint a receiver as an alternative to bankruptcy, The Real Deal reported.
The court appointed Gregg Williams of Trident Pacific Real Estate Group as receiver for the property. In his role, Williams has the power to “market, advertise, promote and negotiate the sale of the property,” according to court filings seen by TRD.
Williams has already begun to make changes, hiring Colliers to manage the property and oversee leasing, the firm announced Friday.
Proceeds from any sale would go toward outstanding debts. Subsidiaries of Brookfield DTLA Fund Office Trust Investor defaulted on $465M worth of loans for the building at 555 West Fifth St., Bisnow reported in February.
It wasn't the only building owned by the fund to fall behind on payments, and there may be more to come. The fund's November filings with the Securities and Exchange Commission showed the entity has about $822M in debt set to mature by the end of 2023.
Earlier this month, Brookfield DTLA Fund Office Trust Investor filed documents with the SEC to voluntarily delist its stock, which was in danger of being delisted. It filed a separate document last week to suspend some of its reporting obligations with the SEC, often done in conjunction with delisting.
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