Two California Plaza Goes into Receivership
(Mark Your Calendars: RealShare DISTRESSED ASSETS, May 3-4 in Dallas, TX).
LOS ANGELES-William Howell has been named as receiver for Two California Plaza, a 54-story, 1.4-million-square-foot, office tower here in downtown Los Angeles. The property is California's largest single asset real estate receivership in 2012.
Howell has appointed Cushman and Wakefield as exclusive leasing agent for the Tower and Ocean West Management Services as property manager. The Cushman and Wakefield leasing team will be personally directed by John C. Cushman III. Lead leasing brokers are Steven Marcussen, Rich Grande and Norm Mitchell.
“I am confident that the tower can be returned to immediate success in the leasing and tenant community,” Howell says. “Significant capital has been allocated for improvements to the property and for future leasing costs.”
In addition, Howell adds, “our strong management and leasing team will immediately focus on the needs of existing tenants as well as new tenants that will be attracted to the Tower.”
The property management team from Ocean West will be led by Ted Bischak and Russ Allegrette, both of whom have had significant experience with downtown Los Angeles high-rise properties, according to a prepared statement.
As GlobeSt.com previously reported, in December of 2010, MPG Office Trust said that it planned to default on the $470 million mortgage for its 54-story, 1.3-million-square-foot Two California Plaza as a first step toward restructuring the loan. Two California Plaza was built in 1992 and was designed by Arthur Erickson architects. The project includes more than 52,000 square feet of retail space.
MPG said at the time that it was “optimistic about the prospects for Downtown Los Angeles as a whole and for its core portfolio.”
MPG reported in its 10-K statement that it has a substantial amount of debt that it may not be able to extend, refinance or repay on favorable terms or at all. As of Dec. 31, 2011, the company had $509.5 million of debt maturing in 2012 and $533.6 million of debt maturing in 2013.
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