search

The Real Deal Logo

Trending

Billionaire hedge funder Larry Robbins makes South Florida moveBillionaire hedge funder Larry Robbins makes South Florida moveChavin surrenders Loop office-to-resi play with deed-in-lieu of foreclosureChavin surrenders Loop office-to-resi play with deed-in-lieu of foreclosureHousing deal finally passes; here are the detailsHousing deal finally passes; here are the detailsTides Equities faces three foreclosures in Fort WorthTides Equities faces three foreclosures in Fort Worth
Commercial
Los Angeles

KBS sees “no assurance” Joel Schreiber will close Union Bank Plaza purchase

Deadline to buy 40-story tower for $155M extended through Nov. 30

Joel Schreiber and KBS Realty Advisors' Charles Schreiber with 445 South Figueroa Street (Shir Stein, LinkedIn, Union Bank Plaza, Getty)
Joel Schreiber and KBS Realty Advisors' Charles Schreiber with 445 South Figueroa Street (Shir Stein, LinkedIn, Union Bank Plaza, Getty)

KBS can’t guarantee that it will be able to sell its Union Bank Plaza to Waterbridge Capital, a firm run by embattled investor Joel Schreiber.

“There can be no assurance that the company will complete the sale of Union Bank Plaza,” the Newport Beach-based REIT said in a financial filing this week.

KBS has tried to sell the building since at least 2017, only to experience a series of failed attempts. First, RC Acquisitions backed out of a $280 million purchase; then in June, Harbor Associates backed out of a $165 million deal to buy the property.

A month later, Schreiber’s entity signed an agreement to buy the 40-story office tower at 445 South Figueroa Street in Downtown L.A. for $155 million, after winning a bidding war against four other buyers.

The deal was all-cash, leading KBS to initially think the deal would close, according to a source familiar with the matter.

Sign Up for the undefined Newsletter

Since then Waterbridge has asked KBS to extend the closing date three times, but did not state the reason for the requested extensions. Neither KBS, nor a representative for Schreiber, responded to requests for comment.

Schreiber’s firm now has until Nov. 30 to close on the deal, KBS said in its filing. If Waterbridge does not close, it may forfeit a deposit of up to $10.5 million.

Schreiber, who is known for being the first investor in WeWork, is currently navigating a Chapter 11 bankruptcy on another Downtown L.A. property: the Broadway Trade Center.

On Thursday, Schreiber lost his own deal to sell that historic, yet unoccupied and unrenovated, building at 801 South Broadway, after the proposed buyer, Quinton Primo of Capri Capital Partners, did not put down a deposit on the property.

Read more

Tags
Downtown L.A.Investment SalesJoel SchreiberKBSLA Office Market