An office building in El Segundo owned by Starwood Capital and Artisan Ventures is headed to foreclosure.
MetLife Investment Management has initiated a foreclosure on 1960 East Grand Avenue, a 257,000-square-foot office building, with an auction scheduled for June 11, according to a notice filed with Los Angeles County.
The foreclosure auction comes almost five months after Starwood and Artisan defaulted on an $84.8 million loan from MetLife tied to the building, records show.
Starwood and Artisan owed $81.5 million under the loan as of May 10, according to the foreclosure notice. That total includes unpaid principal, interest and default interest.
If MetLife takes over the building for an amount equal to the outstanding debt, the deal will come to $317 per square foot, and mark a roughly 38 percent discount from the $133 million Starwood and Artisan spent on the building in 2020.
Starwood declined to comment, while Artisan and MetLife did not immediately respond to requests for comment.
MetLife provided the loan in 2020 to finance Starwood and Artisan’s acquisition of the building and a neighboring parking lot.
In 2022, Artisan and Starwood planned to redevelop the parking lot into 94,000 square feet of office space and a four-level parking structure, according to documents filed with the City of El Segundo Planning Division. However, the plans never came to fruition.