X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES, CA-Former tenant eToys has filed a lawsuit against Kilroy Realty Corp. asking the Los Angeles-based real estate investment trust to return of the proceeds from two letters of credit that Kilroy collected on when eToys defaulted on its rent at a Kilroy-owned building before going bankrupt.

Kilroy was one of a number of Southern California landlords that required eToys and other dot-com companies to post letters of credit rather than cash as security on the theory that letters of credit would not be tied up in court as cash accounts would if dot.com companies went bankrupt.

EToys formerly occupied nearly all of a 151,000-sf office building at Kilroy’s Westside Media Center in West Los Angeles. The REIT collected approximately $15 million on the eToys letters of credit for rent and as reimbursement for tenant improvement costs. Kilroy, which says the eToys suit is “without merit,” says eToys defaulted on its lease and other obligations in January of 2001. The online toy retailer filed for bankruptcy in March of 2001.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.