Brookfield Takes $111M Write Down on DTLA Tower
The Measure ULA “mansion tax” is being blamed for a massive Brookfield write down of the South Tower of the Wells Fargo Center at 355 S. Grand Ave in downtown Los Angeles. The firm has written down by $111 million, about a quarter of the building’s value, according to the firm’s annual report by the Brookfield DTLA Fund Office Trust Investor.
The fund also said that cash generated by its portfolio of six office buildings and a retail center in Downtown Los Angeles is not covering its investing and financing activities, including debt obligations, leasing costs and capital expenditures.
The write down comes on the heels of Brookfield’s default on two major DTLA office towers totaling $784 million: the Gas Company Tower at 555 W. 5th Street and the 777 Tower on South Figueroa Street.
The newly enacted Measure ULA transfer tax added a 4% tax on all Los Angeles real estate sales over $5 million and a 5.5% tax on sales over $10 million.