More Bad News For Office

There goes another one: A Brookfield-managed fund has put its 41-story EY Plaza office tower in Downtown Los Angeles into receivership after defaulting on loans. Also, coworking biggie WeWork continues to lose executives. Its chief financial officer is out barely a week after its chief executive announced he was leaving. TGIF, right?

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— Tom Acitelli, Co-Deputy Editor

Brookfield Fund Hands EY Plaza in Downtown LA to Special Receiver

The owner of Downtown Los Angeles’ EY Plaza has handed the keys to the 41-story office tower over to a special receiver. The move came after news broke that the landlord, a Brookfield-managed fund, missed payments on $275 million in CMBS financing tied to the 968,184-square-foot building. Gregg Williams of Trident Pacific Real Estate, the appointed receiver, has retained Colliers as exclusive leasing and property manager, the brokerage said. The receivership process allows lenders to recover funds by either selling the property or restructuring deals to avoid bankruptcy.

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WeWork CFO to Depart as Coworking Giant Loses Another Exec

WeWork Chief Financial Officer Andre Fernandez is quitting after only one year on the job, the second C-suite executive at the coworking firm to hand in a resignation this month. Fernandez’s resignation as of June 1 comes less than two weeks after the company announced that CEO Sandeep Mathrani would be making his exit amid tumultuous developments at WeWork such as a slipping credit rating and a possible delisting from the New York Stock Exchange. Chief Accounting Officer Kurt Wehner will take over for Fernandez.

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