An auction has been scheduled to sell ex-boxer Oscar De La Hoya’s office building downtown, according to a notice of trustee’s sale dated late March.
The public foreclosure auction is set for April 27, per the document, and 626 Wilshire Boulevard will go to the highest bidder after the Olympic gold medalist defaulted on his loan, owing $23 million of the $27 million original balance – that is, if the loan doesn’t sell first.
The special servicer is simultaneously shopping the non-performing note, according to an online auction platform. The loan auction is happening now and ends Wednesday with the starting bid at $5.5 million, which is much less than what the world champion boxer owes. If a buyer is selected, there would be no foreclosure auction.
The 150,000-square-foot, 12-story tower is located in Downtown Los Angeles’ Financial District. It is 56 percent occupied, per the Cushman & Wakefield offering, and is leased to a rent roll of 26 tenants – including De La Hoya’s company – that have a weighted average term of less than five years. Net operating income is about $1.5 million, per the offering. The offering puts the unpaid balance slightly lower than the notice of trustee’s sale at about $22 million.
The latest servicer commentary via Morningstar Credit notes the lender and borrower were in negotiations over a modification and extension, but the borrower said it was unable to proceed.
“The lender is pursuing foreclosure proceedings while concurrently evaluating a potential sale of the note,” the March commentary reads.
Bank of America originated the commercial mortgage-backed securities debt, and LNR Securities Holdings is the special servicer, which acts on behalf of the lender and CMBS bondholders.
DTLA’s office sector has an almost 35 percent vacancy rate, per CBRE research, and offices seem to be trading around the $130 per square foot mark. That’s in line with the latest $19 million appraisal on De La Hoya’s property, per Morningstar.
De La Hoya’s Golden Boy Promotions purchased a controlling interest in the property for $16 million two decades ago from Barker Pacific Group, which kept a minority share, the Los Angeles Times reported. Barker Pacific Group still appears to hold ownership, as The Real Deal previously reported.
Golden Boy and Barker Pacific did not immediately respond to a request for comment; LNR declined.
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