Debt for sale: Lenders want out of Brookfield-owned DTLA office

Lenders are looking to sell the debt connected to the Brookfield-owned EY Plaza after a deal to purchase the distressed downtown office tower fell apart.

Colliers is peddling the $275 million non-performing loan in an offering memorandum, emphasizing "a massive discount to note balance." The brokerage firm is also playing up the building's status as an iconic tower in the heart of downtown LA.

The 41-story, 900,000 square foot property at 725 South Figueroa Street was placed in receivership two years ago after a debt default. The last appraisal valued the building at $150 million, a steep drop from its original value of $446 million when the loan was issued.

According to sources, the lenders are willing to take a significant loss on the debt in order to unload it. This is likely due to the ongoing struggles in the office market, particularly in downtown LA where vacancy rates are high and rents are dropping.

While the building may have once been considered a desirable investment, the current economic climate has made it a challenging asset to manage and profit from. The lenders are now looking to cut their losses and move on.

Originally reported by The Real Deal

https://therealdeal.com/la/2025/09/07/lenders-look-to-sell-off-debt-on-ey-plaza/