Brookfield defaulted on a $161.4M mortgage for a dozen office buildings, which are majorly around Washington D.C.
The loan has been transferred to a special servicer.
- The
rising borrowing costs and office vacancies increasing because of
remote and hybrid work has forced landlords to default on debt.
- A
filing revealed the special servicer is working with the borrower to
negotiate a pre-negotiation agreement and determine the path forward.
- According
to Trepp, around 4.8% of office properties with CMBS were managed by
special servicers in March, increasing by 1.6% from last year.
- Earlier
this week, a Brookfield property in Los Angeles was also transferred to
a special servicer and placed on watch by Kroll Bond Rating Agency.
