Brookfield subsidiary defaults on two Los Angeles office buildings

BENGALURU: Asset manager Brookfield Corp’s subsidiary is defaulting on loans related to two
buildings in Los Angeles, California, a regulatory filing with the U.S. Securities and Exchange
Commission showed on Tuesday.
The value of commercial office real estate has dropped since the pandemic as companies shift
towards remote work, leading to heavy vacancies at full-scale workplace buildings. Rising
interest rates have also piled pressure on real estate investment trusts (REITs) and soured loan
demand.
The two properties, part of Brookfield DTLA Fund Office Trust Investor’s portfolio, are 777
Tower and Gas Company Tower, with debts around $290 million and $465 million, respectively.
Brookfield did not immediately respond to a Reuters request for comment.