Max Azria defaults on $34.6M in loans on Vernon warehouses

Designer's struggling label recently filed for bankruptcy

Mar.March 15, 2017 04:30 PM
The building at 2761 Fruitland Avenue (Google Earth) and Max Azria (Getty)

Designer Max Azria has defaulted on $34.6 million in loans attached to a trio of Vernon warehouses.

The portfolio loan, which was originated by LaSalle Bank in 2007, has been sent to special servicing due to a maturity default, according to data provided by CMBS analytics firm Trepp.

The 601,979-square-foot portfolio comprises three buildings at 2701-2761 Fruitland Avenue, 2665 Leonis Boulevard and 4701 S. Santa Fe Avenue. The properties have been 100 percent occupied by the high-end women’s fashion retailer since securitization in 2007, Trepp said.

The default likely comes as little surprise to those in the fashion know. Azria’s glitzy fashion label BCBG filed for bankruptcy earlier this month and said it will close 120 of its stores.

Its top executives cite a shift in consumer habits, including a migration towards online shopping and less emphasis on branded apparel.

Per the bankruptcy filing, the company will sell in a court-supervised auction in May. If it receives no acceptable bids, it will attempt to negotiate a debt-for-equity swap with lenders.

Vernon-based BCBG reportedly owes its lenders close to $500 million. It leases the warehouses from Azria.

At its height, BCBG operated more than 570 stores internationally.

Correction: In a previous version of this story, The Real Deal incorrectly identified BCBG as the debtor. The debt is personally held by Max Azria, according to a BCBG spokesperson. 

Related Articles

Space Investment Partners co-founders Mark Moshayedi and Ryan Gallagher with Westport Plaza (Credit: Connect California)

Playing small mall: New firm picks up shopping center in Costa Mesa

DH Holdings founder David Horenstein and Conejo Gateway

Local firm plans to expand Thousand Oaks retail plaza after $18M purchase

Hollywood & Highland, Gaw Capital Chairman Goodwin Gaw and DJM founder John Miller

CIM Group sells Hollywood & Highland mega-complex for $325M: sources

Rick Edwards, partner at Seagrove Property Group and the property

Foreign investor drops $13.7M on fully leased shopping center in San Gabriel Valley

Fabio Conti and the retail centers (Credit: Facebook)

Real estate’s on the menu for Fabio Conti, as restaurateur buys 2 retail centers

Sterling Organization CEO Brian Kosoy and the two Melrose Avenue properties

Sterling Organization buys retail portfolio along booming Melrose Avenue

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village