Following the collapse of banks on both coasts last month, financial markets are jittery, and the lingering threat to commercial real estate is significant, with a litany of issues, primarily tracing back to pandemic restrictions, affecting office and retail real estate.
Office vacancies are distressing lenders, as evidenced by the February default of Brookfield Asset Management on its twin 52-story towers in Los Angeles.
Additionally, in a deal consummated March 30, downtown Los Angeles’s Union Bank Plaza sold for $104 million. The building previously sold in 2010 for $208 million, underwent a $22 million renovation, and was reportedly listed for as much as $250 million in 2021….