Contractors accuse Brookfield of not paying $6M for work on LA buildings

A series of lawsuits allege that Brookfield owes $6 million in unpaid bills to contractors that worked on its Downtown Los Angeles office buildings.

Contractors have filed at least 13 suits concerning mechanic’s liens on Downtown buildings owned by the Toronto-based investment firm, specifically for the office properties at 777 and 725 South Figueroa Street, Bisnow reported.

Half the claims are for work completed at the 777 Tower at 777 South Figueroa, while half pertained to work at EY Plaza at 725 South Figueroa, which went into a receivership in April.

In all cases, the complaints name affiliates controlled by Brookfield or New York-based Brookfield Property Partners.

The lawsuits, filed within the last year, add to Brookfield’s troubled Downtown properties. This year, its Brookfield DTLA Fund Office Trust Investor defaulted on more than $784 million in loans.  

Brookfield was technically in default on the loan for 777 Tower, having failed to secure a rate cap, a hurdle that many office owners will face over the next year. However, The Real Deal reported in June that it was making payments and wasn’t delinquent on the loan.

Brookfield declined to comment to Bisnow on the status of 777 Tower or the mechanic’s liens at its Downtown properties. 

In some cases, office tenants are included in the complaints against Brookfield.

Environmental Contracting, an interior construction service company based Downtown, says it is owed $2.5 million for work to build out offices for Saiful Bouquet Structural Engineering, plus interest since the end of last year.

Saiful Bouquet is named along with Brookfield as a defendant in the complaint, which was filed on April 28. A representative for Saiful Bouquet declined to comment. 

A similar complaint filed in June reported by The Real Deal involved a contractor that had performed work at the 777 Tower and said it was owed more than $1.3 million, plus interest. 

Mechanic’s liens are filed when a contractor is owed money for completed work. Owners sometimes have reasons for delaying payment, however, including questions about the quality of the work.

Mechanic’s lien cases for EY Plaza each have stays because the property is in receivership.  

— Dana Bartholomew

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