<\/p>\n
Chris Rising and his Rising Realty Partners belong in the same sentence as Brookfield when it comes to Downtown Los Angeles these days \u2014 but not in a colossus-astride-the-commercial property market sort of way.<\/span><\/p>\n Rising and partner DigitalBridge joined Brookfield on the list of landlords with properties in receivership last week, when a judge made the call on the 1 million-square-foot, 42-story One California Plaza on Bunker Hill. Lenders\u2019 request for a receiver led to Triguild taking on the role in the wake of a $300 million commercial mortgage-backed securities debt default and foreclosure.<\/span><\/p>\n Rising Realty and DigitalBridge (previously called Colony Capital and earlier Colony Northstar) purchased the office tower <\/span>at<\/span> 300 South Grand Avenue for $465 million eight years ago. It is now valued at $121 million.\u00a0<\/span><\/p>\n The steep drop has come against a backdrop of Downtown L.A.\u2019s office sector muddling along around a 33 percent vacancy rate. Powerhouses such as Brookfield have been handing keys back to lenders on multiple Class A offices over the past year or so, and more recently the company saw the receiver sale of EY Plaza <\/span>fall through<\/span>.<\/span><\/p>\n<\/p>\n The property in question, One California Plaza, is a significant office tower in the Downtown Los Angeles area. Its decline in value from $465 million to $121 million over eight years underscores the challenges faced by the commercial real estate sector in the region.<\/p>\n The situation with One California Plaza reflects broader trends in the Downtown L.A. office market, where vacancy rates have been high. This has led to several prominent landlords, including Brookfield, facing difficulties with their properties, including defaults and foreclosures.<\/p>\n Commercial real estate doesn\u2019t get much closer to plain vanilla than a big, long-established industrial REIT. Until famed activist investor Elliott Investment Management starts looking under the hood. That appears to be the case for Rexford Industrial Realty, the $10 billion specialist in Southern California infill development of warehouses and logistics hubs. Elliott Investment Management has reportedly built an active stake in Los Angeles-based Rexford, which should not come as a surprise. Deutsche Bank earlier this year predicted someone may make a bid for Rexford\u2019s portfolio because the Southern California market could present an opportunity for private and public investors looking to expand their reach.<\/p>\n Rexford recently reported around $113 million in net income in the second quarter of the year, an about 42 percent increase compared to a year earlier. Co-Chief Executives Micheal Frankel and Howard Schwimmer credited what they called \u201cthe resiliency of our business model in today\u2019s dynamic market environment.\u201d Not every move Elliott makes is \u201cactivist\u201d \u2014 or hostile, for that matter. No comment on either side on this one \u2026 yet<\/p>\n It looks as though this developer jumped through the hoops but was working without a net. Norman Haynie won the approval of the Malibu City Council for a new 39-room boutique hotel on Pacific Coast Highway, and got the famously picky California Coastal Commission\u2019s okay, too. And then he defaulted on a $16 million construction loan to develop his proposed Sea View Hotel at 22741 Pacific Coast Highway, records reveal. The more than 1 acre site is not far from the Malibu Pier, and while it wasn\u2019t affected by the wildfire earlier this year, it probably hasn\u2019t helped the overall development plan to be located in a city where more than 700 homes were destroyed.<\/p>\n Big moves across LA\u2019s commercial real estate: Westwood Financial taps new CEO The story of the DTLA office tower in receivership, along with the potential takeover of Rexford Industrial Realty and the default in Malibu, paints a complex picture of the commercial real estate market in Los Angeles. Challenges such as high vacancy rates and defaults are juxtaposed with opportunities for growth and investment, particularly in the industrial sector. As the market continues to evolve, it will be crucial for investors, developers, and landlords to navigate these dynamics carefully.<\/p>\n DTLA Office Tower In Receivership Chris Rising and his Rising Realty Partners belong in the same sentence as Brookfield when it comes to Downtown Los Angeles these days \u2014 but not in a colossus-astride-the-commercial property market sort of way. Rising and partner DigitalBridge joined Brookfield on the list of landlords with properties in receivership last […]<\/p>\n","protected":false},"author":3,"featured_media":20680,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-20678","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"jetpack_featured_media_url":"https:\/\/i3.wp.com\/static.therealdeal.com\/wp-content\/uploads\/2025\/08\/DTLA-Office-Tower-In-Receivership-700x467.jpg?w=1920&resize=1920,1267&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/20678"}],"collection":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/comments?post=20678"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/20678\/revisions"}],"predecessor-version":[{"id":20681,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/20678\/revisions\/20681"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/media\/20680"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/media?parent=20678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/categories?post=20678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/tags?post=20678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Background on the Property<\/h2>\n
Implications for the Market<\/h2>\n
Rexford as Takeover Target?<\/h2>\n
Recent Performance of Rexford<\/h2>\n
Malibu Default<\/h2>\n
Read More<\/h2>\n
\nPrice revealed for Waterton\u2019s Warner Center apartment complex buy<\/p>\nConclusion<\/h2>\n
FAQs<\/h2>\n
\n
\nA: The office tower is in receivership due to a $300 million commercial mortgage-backed securities debt default and foreclosure.<\/li>\n
\nA: Rexford is seen as an attractive target due to its significant presence in the Southern California industrial real estate market, which is considered a prime location for warehouses and logistics hubs.<\/li>\n
\nA: The developer, Norman Haynie, defaulted on a $16 million construction loan for the hotel after receiving approvals from the Malibu City Council and the California Coastal Commission.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"