Canadian real estate giant Brookfield has defaulted on a $161.4M mortgage backed by more than a dozen office buildings, mainly in the DC market.
The loan was transferred to a special servicer who is working "with the borrower to execute a pre-negotiation agreement to determine the path forward," according to a filing, Bloomberg reported.
Among the dozen buildings in the Brookfield portfolio, occupancy rates averaged 52% in 2022, down from 79% in 2018 when the debt was underwritten, according to the report. Monthly payments on the mortgage's floating-rate debt jumped to about $880,000 in April from just over $300,000 a year earlier as the Federal Reserve raised interest rates.
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