Metlife wants Rockpoint to cede control of a Miracle Mile office tower. In a complaint dated early June, the lender claims the owner is in default on a roughly $164 million loan.
Metlife alleges Rockpoint, a Boston-based private equity outfit, failed to pay back an about $2 million protective advance, money a lender gives a borrower to protect the collateral — in this case, an office tower on Wilshire Boulevard. The advance was made in early April to pay taxes, per the lender. Metlife gave Rockpoint until April 28 to pay up, and it hasn’t. The borrower has “failed and refused to do so,” the complaint read.
Now, the lender wants a receiver to take over. But, the loan has not matured. Per the complaint, the note, which has an about 3.50 percent fixed interest rate, matures in 2030. (The default interest rate is about 7.50 percent).
Rockpoint told Metlife, according to the complaint, that it was not going to pay the real estate taxes, and that’s when Metlife doled out the cash. Since Rockpoint hasn’t paid Metlife back post notice of default, the lender “will commence nonjudicial foreclosure proceedings,” the court documents read.
An attorney for Metlife did not respond to a request for comment; representatives for Rockpoint declined.
Rockpoint purchased the 31-story, around 450,000 square-foot tower at 5900 Wilshire Boulevard in Los Angeles’ Miracle Mile district for $303 million from a partnership of PGIM Real Estate, Ratkovich Company and AXA Capital in 2020, when Metlife loaned the money.
Elsewhere in Miracle Mile, Onni Group’s $408 million loan is in special servicing. Onni owes about $384 million on the around 1-million-square-foot office complex at 5700 to 5750 Wilshire Boulevard. Servicer commentary dated early May noted the loan moved due to imminent monetary default. But, the move could be a workout play because Onni Group is scrapping its office expansion plans in favor of housing.
Read more
Commercial
Los Angeles
Onni’s $400M loan finds itself in special servicing again
Commercial
Los Angeles
Rockpoint closes on $303M deal for Miracle Mile office tower