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Financial distress in Downtown Los Angeles has extended beyond the office market.
Realm and Bascom Group defaulted on a $32.9 million loan tied to a planned 36-story apartment tower development in the beleaguered district, according to reporting by The Real Deal, which cited county records. Terracotta Group provided the loan in 2021, which refinanced an initial loan on the project provided by Starwood Capital Group.
The development at 675 South Bixel Street, named Bixel Tower, calls for 422 units and 4,900 square feet of commercial space. Realm and Bascom acquired seven land parcels for the project in 2019 for $28.6 million, per TRD. Foreclosure on the project can’t be arranged until at least Feb. 28, per state rules. The tower is listed for sale with no listed price through JLL (JLL).
Neither Realm nor Bascom could immediately be reached for comment. Terracotta declined to comment.
Realm is also planning to build a separate 33-story, 452-unit building in Downtown L.A.’s Fashion District at 222 East Seventh Street, per TRD. Realm, together with Urban Offerings, paid $24.3 million for that property in 2018.
The Orange County-based companies are far from the only ones missing payments on large projects in Southern California. Investment management firm Brookfield defaulted on over $1 billion in debt tied to three downtown office towers earlier this year. Meanwhile, TA Partners defaulted on nearly $200 million in loans tied to two apartment buildings in Irvine in October, while Walton Street Capital and Greenlaw Partners in November missed payments on a $63 million loan tied to an office tower in Orange, Calif.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
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