Here's where SB 79 may apply in Los Angeles
Pasadena Office Tower faces foreclosure as owners blame tenant flight and inflationary pressures for default on $40 million debt.
The owners of the Pasadena Office Tower, two entities known as LNR Partners and C-III Asset Management, are facing foreclosure after a $40 million default on the commercial mortgage-backed securities loan connected to the nine-story building located at 150 South Los Robles Avenue.
According to servicer commentary via Morningstar Credit, the loan landed in special servicing as default was considered likely and imminent. The owners acknowledged that they would not be able to pay off the loan before maturity, citing "tenant flight to higher quality space, reduced office demand, and inflationary pressures" as reasons for the default.
The office building, which is currently 30% occupied, has been struggling to find tenants and fill vacancies. The owners have tried to refinance the property in the past, but were unsuccessful.
Despite the financial struggles, the owners remain optimistic and are actively seeking solutions to avoid foreclosure. "We are working diligently with our lenders and advisors to find a mutually beneficial solution for all parties involved," said a spokesperson for LNR Partners and C-III Asset Management.
This news comes as a blow to the once-promising development that was supposed to bring a new wave of business to the area. With the uncertain future of the Pasadena Office Tower, it remains to be seen what will happen to the struggling property.
https://therealdeal.com/la/2025/09/26/distressed-pasadena-office-tower/