Thorofare Capital has launched a foreclosure sale for two historic office buildings in Downtown Los Angeles after Livwrk defaulted on a $17.5 million loan.
The El Segundo-based lender has listed for sale AtTraction, the two-building property at 800 and 810 Traction Avenue, the Commercial Observer reported. The price for the buildings was not disclosed.
Livwrk, based in New York, bought the buildings in September 2021 for $19.5 million, after borrowing $17.5 million from Thorofare. The 18-month, interest-only loan had two extension options.
The Brooklyn developer led by Asher Abehsera had teamed up with L.A. production firm Willow Studios to overhaul the 60,900-square-foot property into a Class-A office and “lifestyle” project, with toned-up facades, entrances and new rooftop patio decks.
The six-story building at 800 Traction Avenue, built in 1918, was designed by John Parkinson, who also designed the L.A. Memorial Coliseum, Los Angeles City Hall, Union Station and the USC Administration Building. It was once occupied by Ben-Hur Coffee and Spice Company and the L.A. Desk Company and turned into artist-in-residence lofts in the 1980s.
The two-story brick building at 810 Traction Avenue next door, built the same year, also contains artist lofts.
But Livwrk flubbed the payback, and was forced to hand the keys to the lender as a deed in lieu of foreclosure.
Cushman & Wakefield, which is marketing the property, called it the “crown jewel” of the Arts District.
AtTraction is now the second project in L.A. that Livwrk has turned its back on.
In late 2020, Livwrk and Canadian developer DFH Partners agreed to buy the Baldwin Hills Crenshaw Plaza mall for $110 million.
But the firms failed to make payments after 60 days and a 10-day extension, which resulted in previous owners Capri Urban Investors nixing the deal, according to The Real Deal.
Even as higher interest rates have complicated lending, Thorofare continues to make deals. Late last year, the lender made a $24.7 million refinancing loan to Palladium Group for an apartment complex in Philadelphia, bringing Thorofare’s yearly deals to $623 million for 19 loans, according to the Observer.
— Dana Bartholomew
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