A 2019 photo of the Broadway Trade Center.
The Broadway Trade Center, a 1.1 million-sf mixed-use building in downtown Los Angeles, was seized after a long period of delinquency on $221 million, according to a complaint filed in Los Angeles Superior Court in May. I’m here.
Broadbridge LA, a joint venture of Waterbridge Capital and Continental Equities Group, which planned to redevelop a property, has stopped disbursing a $213 million loan. received in 2018 From a subsidiary of Starwood Property Trust.
On June 8 of this year, the court granted a request to transfer assets from another Starwood-controlled entity, Museum Building Holdings, to a trustee. This effectively handed over the Broadway Trade Center to an outside party tasked with protecting the lessor’s investment. By controlling development.
Museum Building Holdings “has been informed, believes, and claims on the basis that the borrower is financially unable to remedy its default because the borrower has failed to pay amounts due under the bill.” stated in the complaint.
The Broadway Trade Center occupies almost one block. built in the early 20th century as a department storeThe plan was to restore the exterior and overhaul the interior, adding over 350,000 SF offices, over 400,000 SF retail stores, and a 186-room hotel, Commercial Observer. reported.
By the end of 2019, the complaint alleges, the total amount owed amounted to $218 million. Museum Building Holdings said Broadbridge has agreed to repay the principal amount of the loan in full by June 9, 2020.
But no repayment came. A number of extensions and payment deferrals have been established, but the complaint alleges that those dates have passed without the debt being repaid.
Broadbridge’s debt, which was most recently paid in full on December 31, 2021, was not paid. Property taxes due in November 2021 were also due, according to the complaint, but the county assessor’s website shows the current tax amount.
In March 2022, MBH sent a notice of termination to Broadbridge.
In April, MBH filed both a notice of default and a notice of its intention to sell the property under the trust deed with the county registrar’s office, the complaint says.
As of May 24, MBH had a total outstanding balance of $175.98 million on loan principal and an additional $45.6 million for another loan made to Broadbridge for the project, or a total of $175.98 million. said it owed about $221.6 million in
Museum Building Holdings’ complaint alleges that the terms of the loan and subsequent “standstill agreements” entered into after the loan’s original maturity date have passed may require the appointment of a beneficiary to own the property. It is possible. under these circumstances.
Broadbridge LA appeared at a court hearing at the end of June and had the opportunity to object to confirming the recipient of the property. The company did not file any objections, according to court filings dated June 30.
Lawyers representing MBH and Broadbridge did not respond to requests for comment. Waterbridge Capital did not respond to a request for comment, and a representative for Continental Equities could not be reached.
Broadway Trade Center may not be easy to unload. In November 2020, was up for sale, the owner reportedly wants to sell for $425 million. CBRE had advertised a listing, but the campaign apparently fell through.
It doesn’t look like any work is being done on site. In late June, the Los Angeles Department of Building Safety said: Code enforcement issues “Abandoned or vacant buildings open to the public,” he said, but that issue appears to have been taken care of.
The Los Angeles Department of Building Safety said: Bissnow An email Tuesday said the building was inspected on July 9 and found to be “protected from unauthorized entry.”
Downtown tour company Esotoric documented Decaying scaffolding surrounds the building and a photo was tweeted showing the structure bent over a pedestrian walkway and falling apart.
The project has stumbled, but Waterbridge Capital doesn’t seem to give up downtown.the company is in the process of purchasing Union Bank Plaza, a 40-story tower in the downtown financial district. The company has proposed a purchase price of $155 million for him, well below what was expected when the tower hit the market a year ago, but the tower’s owner is ill-fated. We are considering this proposal because of the combination. rising interest rates Weak demand for downtown office space.