A loan backed by a downtown Los Angeles office building that Oscar De La Hoya owns and occupies is heading to special servicing after missing its July maturity date.
The boxer is trying to get an extension on the nearly $27 million commercial mortgage-backed securities loan tied to the 12-story office building at 626 Wilshire Boulevard, and the special servicer is reviewing the request, Morningstar Credit reported.
De La Hoya’s firm Golden Boy occupies 10,500 square feet of the building, or around 7 percent of rentable space.
Golden Boy purchased a controlling interest in the office building, which was owned by Barker Pacific Group, for $16 million in 2004. Barker Pacific kept a minority share, the Los Angeles Times reported at the time. The loan originated in 2015.
De La Hoya and Michael Barker, the Barker Pacific founder who recently died, are named sponsors on the loan that has a balance of about $22 million, per Morningstar. Golden Boy and Barker Pacific did not respond to a request for comment.
The 150,000-square-foot office property built in 1966 was last appraised for about $40 million in 2015, according to Morningstar.
Occupancy fell steadily to 59 percent in March 2025 from 67 percent in 2024 and 76 percent in 2023. It was 89 percent occupied when the loan was underwritten.
Meanwhile, income at the property fell to less than $350,000 in March 2025 from $2.34 million at the end of last year. Its debt service coverage ratio is below 1, so the property is not bringing in enough money to pay off debts.
The offices haven’t been renovated since 2004, according to Morningstar. The property is a victim of the flight to quality trend that’s gripped Los Angeles’ office market, where companies are enticing workers to come back into the office with highly amenitized Class A properties in desirable areas — think Century City versus Downtown.
Downtown Los Angeles offices have suffered as a result. The submarket posted a 32.6 percent vacancy rate in the second quarter, a CBRE report shows. West Los Angeles offices, on the other hand, have a 22 percent vacancy rate.