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Updated · Bloomberg · May 8Deutsche Pfandbriefbank and Münchener Hypothekenbank seek buyer for non-performing LA office loan
4 articles · Updated · Bloomberg · May 8
- The debt is backed by the CalEdison Building at 601 W. Fifth St. in downtown Los Angeles, where weak leasing has hurt the property.
- The German lenders are marketing the troubled loan through a private process, according to people familiar with the plans.
- The sale highlights continuing stress in US office real estate, as landlords and lenders grapple with vacancies and refinancing pressure.
How will this German bank's fire sale of a Los Angeles tower redefine the value of distressed US office buildings? Is Europe's banking system facing a crisis from its massive exposure to a failing American commercial real estate market?