Brookfield Corp. funds have defaulted on a $161.4 million mortgage for a dozen office buildings, mainly located around Washington, DC, first reported by Bloomberg. The loan has been transferred to a special servicer who is working with the borrower to determine the path forward.  

Brookfield has previously defaulted on $784 million debt tied to a pair of downtown Los Angeles skyscrapers, the 52-story Gas Company Tower at 555 W. 5th St and the 777 Tower, a 52-story building on S. Figueroa Street. Bloomberg reported another Brookfield office property in Los Angeles was transferred to a special servicer and put on watch by Kroll Bond Rating Agency.  

The pandemic and the rise of remote work have weighed on the values of high-quality office properties, the number of large office landlords defaulting on their loans is on the rise.