At a glance
- Rents at the 695-foot tower fell short of Brookfield's expectations, and the owner used concessions, including free rent, to attract tenants, IREI reported.
- For allocators in Brookfield real estate vehicles, the cash-flow effect depends on which fund held the Beaudry equity and how much debt the building carried; neither was disclosed.
- IREI tied the decision to downtown Los Angeles's slow recovery, where remote work has weakened office demand and held back the residential market.
Brookfield is walking away from Beaudry, a $600 million, 785-unit apartment tower in downtown Los Angeles that opened less than four years ago and is about 95% occupied, IREI reported, citing The Wall Street Journal.
Rents at the 695-foot tower fell short of Brookfield's expectations, and the owner used concessions, including free rent, to attract tenants, IREI reported. Terms of the exit were not disclosed.
For allocators in Brookfield real estate vehicles, the cash-flow effect depends on which fund held the Beaudry equity and how much debt the building carried; neither was disclosed.
IREI tied the decision to downtown Los Angeles's slow recovery, where remote work has weakened office demand and held back the residential market.
Reported by the Real estate debt desk from Institutional Real Estate, Inc., citing The Wall Street Journal and Private Real Estate Daily Deal Tracker. Published . Corrections