(Mark One) | ||||||||||||||
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended | December 31, 2020 |
or | ||||||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _____________________ to __________________ |
Maryland | 46-2616226 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading
Symbol(s) |
Name of each exchange on which registered | ||||||
7.625% Series A Cumulative Redeemable
Preferred Stock, $0.01 par value per share |
DTLA-P | New York Stock Exchange |
Large accelerated filer | ¨ | Accelerated filer | ¨ | Non-accelerated filer | ☑ | ||||||||||||||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | |||||||||||
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Item 16. | |||||||||||
Percentage
Leased |
Annualized
Rent (1) |
Annualized
Rent $/RSF (2) |
|||||||||||||||
December 31, 2020 | 79.1 | % | $ | 165,568,312 | $ | 27.62 | |||||||||||
December 31, 2019 | 82.9 | % | $ | 168,904,581 | $ | 26.87 | |||||||||||
December 31, 2018 | 86.3 | % | $ | 167,124,493 | $ | 25.74 |
Leasing
Activity |
Percentage
Leased |
||||||||||
Leased square feet as of December 31, 2019 | 6,286,137 | 82.9 | % | ||||||||
Contractual expirations and early terminations | (707,209) | (9.3) | % | ||||||||
New leases | 170,934 | 2.3 | % | ||||||||
Renewals | 243,643 | 3.2 | % | ||||||||
Remeasurement adjustments | 2,012 | — | % | ||||||||
Leased square feet as of December 31, 2020 | 5,995,517 | 79.1 | % |
Square Feet | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property |
Number
of Buildings |
Number
of Tenants |
Year
Acquired/ Constructed |
Net
Building Rentable |
% of Net
Rentable |
%
Leased |
Annualized
Rent (1) |
Annualized
Rent $/RSF (2) |
||||||||||||||||||||||||||||||||||||||||||
BOA Plaza | 1 | 28 | 2006 | 1,405,428 | 18.5 | % | 86.3 | % | $ | 33,039,456 | $ | 27.23 | ||||||||||||||||||||||||||||||||||||||
Wells Fargo Center–North Tower | 1 | 38 | 2013 | 1,400,639 | 18.5 | % | 84.2 | % | 34,294,761 | 29.08 | ||||||||||||||||||||||||||||||||||||||||
Gas Company Tower | 1 | 26 | 2013 | 1,345,163 | 17.8 | % | 79.7 | % | 29,150,850 | 27.20 | ||||||||||||||||||||||||||||||||||||||||
EY Plaza | 1 | 45 | 2006 | 963,682 | 12.7 | % | 80.2 | % | 20,772,274 | 26.86 | ||||||||||||||||||||||||||||||||||||||||
FIGat7th | 1 | 28 | 2013 | 316,250 | 4.2 | % | 89.2 | % | 6,646,077 | 23.55 | ||||||||||||||||||||||||||||||||||||||||
Wells Fargo Center–South Tower | 1 | 21 | 2013 | 1,124,960 | 14.8 | % | 63.9 | % | 20,337,828 | 28.30 | ||||||||||||||||||||||||||||||||||||||||
777 Tower | 1 | 49 | 2013 | 1,024,835 | 13.5 | % | 73.9 | % | 21,327,066 | 28.17 | ||||||||||||||||||||||||||||||||||||||||
7 | 235 | 7,580,957 | 100.0 | % | 79.1 | % | $ | 165,568,312 | $ | 27.62 |
Tenant |
Annualized Rent (1) |
% of Total
Annualized Rent |
Leased
Square Feet |
% of Total
Leased Square Feet |
Year of
Expiry |
||||||||||||||||||||||||||||||
1 | Latham & Watkins LLP | $ | 10,451,931 | 6.4 | % | 321,813 | 5.4 | % | Various | ||||||||||||||||||||||||||
2 | The Capital Group Companies | 10,266,910 | 6.2 | % | 403,547 | 6.6 | % | Various | |||||||||||||||||||||||||||
3 | Southern California Gas Company | 8,354,098 | 5.0 | % | 350,998 | 5.9 | % | 2026 | |||||||||||||||||||||||||||
4 | Wells Fargo Bank National Association | 7,280,336 | 4.4 | % | 293,383 | 4.9 | % | 2023 | |||||||||||||||||||||||||||
5 | Bank of America N.A. | 6,952,455 | 4.2 | % | 209,310 | 3.5 | % | 2029 | |||||||||||||||||||||||||||
6 | Gibson, Dunn & Crutcher LLP | 6,200,582 | 3.7 | % | 215,155 | 3.6 | % | 2035 | |||||||||||||||||||||||||||
7 | Oaktree Capital Management, L.P. | 5,791,198 | 3.5 | % | 208,148 | 3.5 | % | 2030 | |||||||||||||||||||||||||||
8 | Sheppard, Mullin, Richter | 5,083,470 | 3.1 | % | 173,959 | 2.9 | % | 2025 | |||||||||||||||||||||||||||
9 | Sidley Austin (CA) LLP | 3,678,693 | 2.2 | % | 135,798 | 2.3 | % | 2024 | |||||||||||||||||||||||||||
10 | Ernst & Young U.S. LLP | 3,577,071 | 2.2 | % | 127,613 | 2.1 | % | 2032 | |||||||||||||||||||||||||||
$ | 67,636,744 | 40.9 | % | 2,439,724 | 40.7 | % |
Tenant | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Beyond | Total |
Year of
Final Expiry |
||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Latham & Watkins LLP | 77 | — | — | — | 162 | — | 83 | 322 | 2031 | |||||||||||||||||||||||||||||||||||||||||||||||||
2 | The Capital Group Companies | 53 | — | — | — | — | — | 350 | 403 | 2033 | |||||||||||||||||||||||||||||||||||||||||||||||||
3 | Southern California Gas Company | — | — | — | — | — | 351 | — | 351 | 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||
4 | Wells Fargo Bank National Association | — | — | 293 | — | — | — | — | 293 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
5 | Bank of America N.A. | — | — | — | — | — | — | 209 | 209 | 2029 | |||||||||||||||||||||||||||||||||||||||||||||||||
6 | Gibson, Dunn & Crutcher LLP | — | — | — | — | — | — | 215 | 215 | 2035 | |||||||||||||||||||||||||||||||||||||||||||||||||
7 | Oaktree Capital Management, L.P. | — | — | — | — | — | — | 208 | 208 | 2030 | |||||||||||||||||||||||||||||||||||||||||||||||||
8 | Sheppard, Mullin, Richter | — | — | — | — | 174 | — | — | 174 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
9 | Sidley Austin (CA) LLP | — | — | — | 136 | — | — | — | 136 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
10 | Ernst & Young U.S. LLP | — | — | — | — | — | — | 128 | 128 | 2032 | |||||||||||||||||||||||||||||||||||||||||||||||||
Leased square feet expiring by year | 130 | — | 293 | 136 | 336 | 351 | 1,193 | 2,439 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of leased square feet expiring by year | 2.2% | —% | 4.9% | 2.3% | 5.6% | 5.9% | 19.8% | 40.7% |
Year |
Total Area in
Square Feet Covered by Expiring Leases |
Percentage
of Leased Square Feet |
Annualized
Rent (1) |
Percentage of
Annualized Rent |
Current Rent per
Leased Square Foot (2) |
Rent per
Leased Square Foot at Expiration (3) |
||||||||||||||||||||||||||||||||
2021 | 269,406 | 4.5 | % | $ | 7,885,514 | 4.8 | % | $ | 29.27 | $ | 29.37 | |||||||||||||||||||||||||||
2022 | 390,666 | 6.5 | % | 10,719,875 | 6.5 | % | 27.44 | 28.93 | ||||||||||||||||||||||||||||||
2023 | 950,941 | 15.9 | % | 24,030,279 | 14.4 | % | 25.27 | 27.10 | ||||||||||||||||||||||||||||||
2024 | 544,131 | 9.1 | % | 15,703,621 | 9.5 | % | 28.86 | 32.06 | ||||||||||||||||||||||||||||||
2025 | 716,816 | 12.0 | % | 20,264,388 | 12.2 | % | 28.27 | 32.47 | ||||||||||||||||||||||||||||||
2026 | 550,019 | 9.2 | % | 13,832,978 | 8.4 | % | 25.15 | 29.40 | ||||||||||||||||||||||||||||||
2027 | 269,992 | 4.5 | % | 7,775,770 | 4.7 | % | 28.80 | 35.27 | ||||||||||||||||||||||||||||||
2028 | 101,435 | 1.7 | % | 3,029,863 | 1.8 | % | 29.87 | 39.28 | ||||||||||||||||||||||||||||||
2029 | 303,025 | 5.1 | % | 9,921,039 | 6.0 | % | 32.74 | 43.05 | ||||||||||||||||||||||||||||||
2030 | 331,831 | 5.5 | % | 10,074,389 | 6.1 | % | 30.36 | 40.24 | ||||||||||||||||||||||||||||||
Thereafter | 1,567,255 | 26.0 | % | 42,330,596 | 25.6 | % | 27.01 | 40.93 | ||||||||||||||||||||||||||||||
Total expiring leases | 5,995,517 | 100.0 | % | $ | 165,568,312 | 100.0 | % | $ | 27.62 | $ | 34.35 | |||||||||||||||||||||||||||
Currently available | 1,585,440 | |||||||||||||||||||||||||||||||||||||
Total rentable square feet | 7,580,957 |
Principal
Amount |
Percent of
Total Debt |
Effective
Interest Rate |
Weighted Average
Term to Maturity (3) |
||||||||||||||||||||
Fixed-rate | $ | 908,500 | 40 | % | 4.19 | % | 2 years | ||||||||||||||||
Variable-rate (1) (2) | 1,340,796 | 60 | % | 2.52 | % | 4 years | |||||||||||||||||
$ | 2,249,296 | 100 | % | 3.19 | % | 3 years |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters | |||||||||||||
and Issuer Purchases of Equity Securities. |
Name | Property Type | Ownership Percentage | |||||||||
Bank of America Plaza (“BOA Plaza”)
|
Class A office | 100% | |||||||||
Wells Fargo Center–North Tower | Class A office | 100% | |||||||||
Gas Company Tower | Class A office | 100% | |||||||||
EY Plaza | Class A office | 100% | |||||||||
Wells Fargo Center–South Tower | Class A office | 100% | |||||||||
777 Tower | Class A office | 100% | |||||||||
FIGat7th | Retail center | 100% | |||||||||
755 South Figueroa | Multifamily residential (under development) | 47.8% |
As of December 31, 2020
|
||||||||||||||||||||||||||
Property Type |
March 2020
Billings Collected(1)
|
Second Quarter of 2020
Billings Collected(1)
|
Third Quarter of 2020
Billings Collected(1)
|
Fourth Quarter of 2020
Billings Collected(1)
|
||||||||||||||||||||||
Office | 100 | % | 98 | % | 98 | % | 98 | % | ||||||||||||||||||
Retail | 97 | % | 39 | % | 62 | % | 65 | % | ||||||||||||||||||
Total | 100 | % | 96 | % | 97 | % | 97 | % |
Interest Rate Type | Effective Date | Maturity Date/Term to Maturity (1) | Interest Rate as of Effective Date | Principal Amount | |||||||||||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||||||||||||||
EY Plaza | Variable | 9/23/2020 | 10/9/2025 | 3.01 | % | $ | 275,000 | ||||||||||||||||||||||||||||||||||
EY Plaza | Variable | 9/23/2020 | 10/9/2025 | 7.00 | % | 30,000 | |||||||||||||||||||||||||||||||||||
Weighted average/total | 5 years | 3.40 | % | $ | 305,000 | ||||||||||||||||||||||||||||||||||||
Repayments of debt | |||||||||||||||||||||||||||||||||||||||||
EY Plaza | Variable swapped to fixed | 9/23/2020 | 11/27/2020 | 3.80 | % | $ | 230,000 | ||||||||||||||||||||||||||||||||||
EY Plaza | Variable | 9/23/2020 | 11/27/2020 | 4.80 | % | 35,000 | |||||||||||||||||||||||||||||||||||
Weighted average/total | N/A | 3.93 | % | $ | 265,000 |
Principal
Amount |
Percent of
Total Debt |
Effective
Interest Rate |
Weighted Average
Term to Maturity (3) |
||||||||||||||||||||
Fixed-rate | $ | 908,500 | 40 | % | 4.19 | % | 2 years | ||||||||||||||||
Variable-rate (1) (2) | 1,340,796 | 60 | % | 2.52 | % | 4 years | |||||||||||||||||
Total secured debt | $ | 2,249,296 | 100 | % | 3.19 | % | 3 years |
Leasing
Activity |
Percentage
Leased |
||||||||||
Leased square feet as of December 31, 2019 | 6,286,137 | 82.9 | % | ||||||||
Contractual expirations and early terminations | (707,209) | (9.3) | % | ||||||||
New leases | 170,934 | 2.3 | % | ||||||||
Renewals | 243,643 | 3.2 | % | ||||||||
Remeasurement adjustments | 2,012 | — | % | ||||||||
Leased square feet as of December 31, 2020 | 5,995,517 | 79.1 | % |
Tenant | Property |
Leased
Square Feet |
||||||||||||
Kirkland & Ellis LLP | BOA Plaza | 74,343 | ||||||||||||
Reed Smith LLP | Wells Fargo Center–South Tower | 67,368 | ||||||||||||
Pillsbury Winthrop Shaw Pittman LLP | EY Plaza | 63,048 | ||||||||||||
Southern California Gas Company | Gas Company Tower | 54,850 | ||||||||||||
Richards, Watson & Gershon | Wells Fargo Center–South Tower | 43,979 | ||||||||||||
Latham & Watkins LLP | Wells Fargo Center–South Tower, Gas Company Tower | 39,294 | ||||||||||||
Yukevich Cavanaugh | Wells Fargo Center–South Tower | 35,440 | ||||||||||||
Gibson, Dunn & Crutcher LLP | Wells Fargo Center–North Tower | 27,009 | ||||||||||||
Oaktree Capital Management, L.P. | Wells Fargo Center–North Tower | 26,116 | ||||||||||||
Dykema Gossett PLLC | Wells Fargo Center–North Tower | 25,502 | ||||||||||||
Wells Capital Management Inc | Gas Company Tower | 24,774 | ||||||||||||
Convene | 777 Tower, FIGat7th | 21,923 | ||||||||||||
City Storage Systems LLC | 777 Tower | 17,361 | ||||||||||||
Brown & Riding Insurance Services, Inc. | 777 Tower | 10,254 | ||||||||||||
WeWork | Gas Company Tower | 9,802 | ||||||||||||
Total | 541,063 |
Square Feet | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property |
Net
Building Rentable |
% of Net
Rentable |
%
Leased |
Annualized
Rent (1) |
Annualized
Rent $/RSF (2) |
|||||||||||||||||||||||||||||||||||||||||||||
BOA Plaza | 1,405,428 | 18.5 | % | 86.3 | % | $ | 33,039,456 | $ | 27.23 | |||||||||||||||||||||||||||||||||||||||||
Wells Fargo Center–North Tower | 1,400,639 | 18.5 | % | 84.2 | % | 34,294,761 | 29.08 | |||||||||||||||||||||||||||||||||||||||||||
Gas Company Tower | 1,345,163 | 17.8 | % | 79.7 | % | 29,150,850 | 27.20 | |||||||||||||||||||||||||||||||||||||||||||
EY Plaza | 963,682 | 12.7 | % | 80.2 | % | 20,772,274 | 26.86 | |||||||||||||||||||||||||||||||||||||||||||
FIGat7th | 316,250 | 4.2 | % | 89.2 | % | 6,646,077 | 23.55 | |||||||||||||||||||||||||||||||||||||||||||
Wells Fargo Center–South Tower | 1,124,960 | 14.8 | % | 63.9 | % | 20,337,828 | 28.30 | |||||||||||||||||||||||||||||||||||||||||||
777 Tower | 1,024,835 | 13.5 | % | 73.9 | % | 21,327,066 | 28.17 | |||||||||||||||||||||||||||||||||||||||||||
7,580,957 | 100.0 | % | 79.1 | % | $ | 165,568,312 | $ | 27.62 |
Year |
Total Area in
Square Feet Covered by Expiring Leases |
Percentage
of Leased Square Feet |
Annualized
Rent (1) |
Percentage of
Annualized Rent |
Current
Rent per Leased Square Foot (2) |
Rent per
Leased Square Foot at Expiration (3) |
||||||||||||||||||||||||||||||||||||||
2021 | 269,406 | 4.5 | % | $ | 7,885,514 | 4.8 | % | $ | 29.27 | $ | 29.37 | |||||||||||||||||||||||||||||||||
2022 | 390,666 | 6.5 | % | 10,719,875 | 6.5 | % | 27.44 | 28.93 | ||||||||||||||||||||||||||||||||||||
2023 | 950,941 | 15.9 | % | 24,030,279 | 14.4 | % | 25.27 | 27.10 | ||||||||||||||||||||||||||||||||||||
2024 | 544,131 | 9.1 | % | 15,703,621 | 9.5 | % | 28.86 | 32.06 | ||||||||||||||||||||||||||||||||||||
2025 | 716,816 | 12.0 | % | 20,264,388 | 12.2 | % | 28.27 | 32.47 | ||||||||||||||||||||||||||||||||||||
2026 | 550,019 | 9.2 | % | 13,832,978 | 8.4 | % | 25.15 | 29.40 | ||||||||||||||||||||||||||||||||||||
2027 | 269,992 | 4.5 | % | 7,775,770 | 4.7 | % | 28.80 | 35.27 | ||||||||||||||||||||||||||||||||||||
2028 | 101,435 | 1.7 | % | 3,029,863 | 1.8 | % | 29.87 | 39.28 | ||||||||||||||||||||||||||||||||||||
2029 | 303,025 | 5.1 | % | 9,921,039 | 6.0 | % | 32.74 | 43.05 | ||||||||||||||||||||||||||||||||||||
2030 | 331,831 | 5.5 | % | 10,074,389 | 6.1 | % | 30.36 | 40.24 | ||||||||||||||||||||||||||||||||||||
Thereafter | 1,567,255 | 26.0 | % | 42,330,596 | 25.6 | % | 27.01 | 40.93 | ||||||||||||||||||||||||||||||||||||
Total expiring leases | 5,995,517 | 100.0 | % | $ | 165,568,312 | 100.0 | % | $ | 27.62 | $ | 34.35 | |||||||||||||||||||||||||||||||||
Currently available | 1,585,440 | |||||||||||||||||||||||||||||||||||||||||||
Total rentable square feet | 7,580,957 |
For the Year Ended December 31, |
Dollar
Change |
||||||||||||||||
2020 | 2019 | ||||||||||||||||
Net cash provided by operating activities | $ | 52,949 | $ | 39,785 | $ | 13,164 | |||||||||||
Net cash used in investing activities | $ | (58,062) | $ | (127,775) | $ | 69,713 | |||||||||||
Net cash provided by financing activities | $ | 29,608 | $ | 41,208 | $ | (11,600) |
For the Year Ended
December 31, |
Increase/
(Decrease) |
%
Change |
|||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Lease income | $ | 256.7 | $ | 276.9 | $ | (20.2) | (7) | % | |||||||||||||||
Parking | 27.8 | 39.7 | (11.9) | (30) | % | ||||||||||||||||||
Interest and other | 1.0 | 1.2 | (0.2) | (16) | % | ||||||||||||||||||
Total revenue | 285.5 | 317.8 | (32.3) | (10) | % | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Rental property operating and maintenance | 96.3 | 105.7 | (9.4) | (9) | % | ||||||||||||||||||
Real estate taxes | 39.3 | 37.7 | 1.6 | 4 | % | ||||||||||||||||||
Parking | 10.6 | 10.4 | 0.2 | 2 | % | ||||||||||||||||||
Other expenses | 14.0 | 9.0 | 5.0 | 55 | % | ||||||||||||||||||
Depreciation and amortization | 104.9 | 105.5 | (0.6) | (1) | % | ||||||||||||||||||
Interest | 82.8 | 98.9 | (16.1) | (16) | % | ||||||||||||||||||
Total expenses | 347.9 | 367.2 | (19.3) | (5) | % | ||||||||||||||||||
Other (Expense) Income: | |||||||||||||||||||||||
Gain from derecognition of assets | — | 24.8 | (24.8) | (100) | % | ||||||||||||||||||
Equity in loss of unconsolidated
real estate joint venture |
(0.5) | (2.1) | 1.6 | (76) | % | ||||||||||||||||||
Total other (expense) income | (0.5) | 22.7 | (23.2) | (102) | % | ||||||||||||||||||
Net loss | $ | (62.9) | $ | (26.7) | $ | (36.2) | 136 | % |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Principal payments on
secured debt (1)(2)(3) |
$ | 450,000 | $ | — | $ | 819,296 | $ | 675,000 | $ | 305,000 | $ | — | $ | 2,249,296 | |||||||||||||||||||||||||||
Interest payments – | |||||||||||||||||||||||||||||||||||||||||
Fixed-rate debt (4) | 30,590 | 18,726 | 16,803 | 11,025 | — | — | 77,144 | ||||||||||||||||||||||||||||||||||
Variable-rate debt (5) | 34,202 | 34,202 | 30,687 | 16,042 | 8,144 | — | 123,277 | ||||||||||||||||||||||||||||||||||
Tenant-related commitments (6) | 18,568 | 29,703 | 1,150 | 997 | 1,558 | 1,153 | 53,129 | ||||||||||||||||||||||||||||||||||
Construction-related
commitments (7) |
3,629 | — | — | — | — | — | 3,629 | ||||||||||||||||||||||||||||||||||
$ | 536,989 | $ | 82,631 | $ | 867,936 | $ | 703,064 | $ | 314,702 | $ | 1,153 | $ | 2,506,475 |
Notional
Value |
Strike
Rate |
Effective
Date
|
Expiration
Date |
Fair
Value |
||||||||||||||||||||||||||||
Interest rate cap | $ | 400,000 | 3.85 | % | 10/15/2020 | 10/15/2021 | $ | — | ||||||||||||||||||||||||
Interest rate cap | 65,000 | 3.85 | % | 10/15/2020 | 10/15/2021 | — | ||||||||||||||||||||||||||
Interest rate cap | 35,000 | 3.85 | % | 10/15/2020 | 10/15/2021 | — | ||||||||||||||||||||||||||
Interest rate cap | 290,000 | 3.63 | % | 11/4/2020 | 11/4/2022 | 3 | ||||||||||||||||||||||||||
Interest rate cap | 268,600 | 4.00 | % | 10/31/2019 | 11/10/2021 | — | ||||||||||||||||||||||||||
Interest rate cap | 50,000 | 4.00 | % | 10/31/2019 | 11/10/2021 | — | ||||||||||||||||||||||||||
Interest rate cap | 275,000 | 4.00 | % | 9/22/2020 | 10/15/2022 | 2 | ||||||||||||||||||||||||||
Interest rate cap | 30,000 | 4.00 | % | 9/22/2020 | 10/15/2022 | — | ||||||||||||||||||||||||||
Total | $ | 1,413,600 | $ | 5 |
Fair Value of | |||||||||||||||||
Interest
Expense |
Secured
Debt |
||||||||||||||||
50 basis point increase | $ | 6,797 | $ | (8,655) | |||||||||||||
50 basis point decrease | $ | (6,797) | $ | 7,069 |
Page | |||||
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
ASSETS | |||||||||||
Investments in Real Estate: | |||||||||||
Land | $ | 222,555 | $ | 222,555 | |||||||
Buildings and improvements | 2,307,762 | 2,283,350 | |||||||||
Tenant improvements | 437,114 | 419,670 | |||||||||
Investments in real estate, gross | 2,967,431 | 2,925,575 | |||||||||
Less: accumulated depreciation | 517,329 | 466,405 | |||||||||
Investments in real estate, net | 2,450,102 | 2,459,170 | |||||||||
Investment in unconsolidated real estate joint venture | 42,395 | 42,920 | |||||||||
Cash and cash equivalents | 37,394 | 33,964 | |||||||||
Restricted cash | 46,089 | 25,024 | |||||||||
Rents, deferred rents and other receivables, net | 133,639 | 138,010 | |||||||||
Intangible assets, net | 22,046 | 31,895 | |||||||||
Deferred charges, net | 63,406 | 68,290 | |||||||||
Due from affiliates, net of allowance for loan losses of $2,653
and $0 as of December 31, 2020 and 2019, respectively
|
10,847 | 18,359 | |||||||||
Prepaid and other assets, net | 10,538 | 9,340 | |||||||||
Total assets | $ | 2,816,456 | $ | 2,826,972 | |||||||
LIABILITIES AND DEFICIT | |||||||||||
Liabilities: | |||||||||||
Secured debt, net | $ | 2,239,640 | $ | 2,199,980 | |||||||
Accounts payable and other liabilities | 96,041 | 79,845 | |||||||||
Due to affiliates | 1,700 | 5,400 | |||||||||
Intangible liabilities, net | 6,005 | 8,306 | |||||||||
Total liabilities | 2,343,386 | 2,293,531 | |||||||||
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
LIABILITIES AND DEFICIT (continued) | |||||||||||
Mezzanine Equity: | |||||||||||
7.625% Series A Cumulative Redeemable Preferred Stock,
$0.01 par value, 9,730,370 shares issued and
outstanding as of December 31, 2020 and 2019
|
$ | 447,028 | $ | 428,480 | |||||||
Noncontrolling Interests: | |||||||||||
Series A-1 preferred interest | 435,242 | 418,029 | |||||||||
Senior participating preferred interest | 20,413 | 22,362 | |||||||||
Series B preferred interest | 198,827 | 185,352 | |||||||||
Total mezzanine equity | 1,101,510 | 1,054,223 | |||||||||
Stockholders’ Deficit: | |||||||||||
Common stock, $0.01 par value, 1,000 shares issued and
outstanding as of December 31, 2020 and 2019
|
— | — | |||||||||
Additional paid-in capital | 202,369 | 197,535 | |||||||||
Accumulated deficit | (726,369) | (499,793) | |||||||||
Accumulated other comprehensive loss | — | (2,341) | |||||||||
Noncontrolling interests | (104,440) | (216,183) | |||||||||
Total stockholders’ deficit | (628,440) | (520,782) | |||||||||
Total liabilities and deficit | $ | 2,816,456 | $ | 2,826,972 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenue: | |||||||||||||||||
Lease income | $ | 256,733 | $ | 276,895 | $ | 268,133 | |||||||||||
Parking | 27,775 | 39,715 | 37,252 | ||||||||||||||
Interest and other | 1,040 | 1,235 | 10,295 | ||||||||||||||
Total revenue | 285,548 | 317,845 | 315,680 | ||||||||||||||
Expenses: | |||||||||||||||||
Rental property operating and maintenance | 96,347 | 105,738 | 98,940 | ||||||||||||||
Real estate taxes | 39,292 | 37,657 | 40,013 | ||||||||||||||
Parking | 10,648 | 10,373 | 10,165 | ||||||||||||||
Other expenses | 13,952 | 9,031 | 9,920 | ||||||||||||||
Depreciation and amortization | 104,920 | 105,529 | 96,264 | ||||||||||||||
Interest | 82,808 | 98,875 | 105,035 | ||||||||||||||
Total expenses | 347,967 | 367,203 | 360,337 | ||||||||||||||
Other (Expense) Income: | |||||||||||||||||
Gain from derecognition of assets | — | 24,777 | — | ||||||||||||||
Equity in loss of unconsolidated
real estate joint venture |
(525) | (2,080) | — | ||||||||||||||
Total other (expense) income | (525) | 22,697 | — | ||||||||||||||
Net loss | (62,944) | (26,661) | (44,657) | ||||||||||||||
Net loss (income) attributable to
noncontrolling interests: |
|||||||||||||||||
Series A-1 preferred interest returns | 17,213 | 17,213 | 17,306 | ||||||||||||||
Senior participating preferred interest
redemption measurement adjustments |
(1,580) | (1,017) | 1,482 | ||||||||||||||
Series B preferred interest returns | 17,708 | 18,049 | 17,961 | ||||||||||||||
Series B common interest –
allocation of net income |
111,743 | 35,181 | 28,343 | ||||||||||||||
Net loss attributable to Brookfield DTLA | (208,028) | (96,087) | (109,749) | ||||||||||||||
Series A preferred stock dividends | 18,548 | 18,548 | 18,532 | ||||||||||||||
Net loss attributable to common interest
holders of Brookfield DTLA |
$ | (226,576) | $ | (114,635) | $ | (128,281) |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net loss | $ | (62,944) | $ | (26,661) | $ | (44,657) | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Interest rate swap contracts designated as cash flow hedges: | |||||||||||||||||
Unrealized derivative holding gains (losses) | 562 | (2,117) | 1,548 | ||||||||||||||
Reclassification adjustment for realized loss (gain) included in net loss | 1,779 | — | (1,198) | ||||||||||||||
Total other comprehensive income (loss) | 2,341 | (2,117) | 350 | ||||||||||||||
Comprehensive loss | (60,603) | (28,778) | (44,307) | ||||||||||||||
Less: comprehensive income
attributable to noncontrolling interests |
145,084 | 69,543 | 65,276 | ||||||||||||||
Comprehensive loss attributable to
common interest holders of Brookfield DTLA |
$ | (205,687) | $ | (98,321) | $ | (109,583) |
Number of
Shares |
Common
Stock |
Additional
Paid-in Capital |
Accumulated
Deficit |
Accumulated
Other Comprehensive Loss |
Non-
controlling Interests |
Total
Stockholders’ Deficit |
||||||||||||||||||||||||||||||||||||||
Common
Stock |
||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 1,000 | $ | — | $ | 194,210 | $ | (256,877) | $ | (273) | $ | (280,008) | $ | (342,948) | |||||||||||||||||||||||||||||||
Net (loss) income | (109,749) | 65,092 | (44,657) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 166 | 184 | 350 | |||||||||||||||||||||||||||||||||||||||||
Contributions | 1,615 | 1,615 | ||||||||||||||||||||||||||||||||||||||||||
Dividends, preferred returns and
redemption measurement adjustments on mezzanine equity |
(18,532) | (36,749) | (55,281) | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 1,000 | — | 195,825 | (385,158) | (107) | (251,481) | (440,921) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | (96,087) | 69,426 | (26,661) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (2,234) | 117 | (2,117) | |||||||||||||||||||||||||||||||||||||||||
Contributions | 1,710 | 1,710 | ||||||||||||||||||||||||||||||||||||||||||
Dividends, preferred returns and
redemption measurement adjustments on mezzanine equity |
(18,548) | (34,245) | (52,793) | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 1,000 | — | 197,535 | (499,793) | (2,341) | (216,183) | (520,782) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | (208,028) | 145,084 | (62,944) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 2,341 | — | 2,341 | |||||||||||||||||||||||||||||||||||||||||
Contributions | 4,834 | 4,834 | ||||||||||||||||||||||||||||||||||||||||||
Dividends, preferred returns and
redemption measurement adjustments on mezzanine equity |
(18,548) | (33,341) | (51,889) | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 1,000 | $ | — | $ | 202,369 | $ | (726,369) | $ | — | $ | (104,440) | $ | (628,440) |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net loss | $ | (62,944) | $ | (26,661) | $ | (44,657) | |||||||||||
Adjustments to reconcile net loss to
net cash provided by operating activities:
|
|||||||||||||||||
Depreciation and amortization | 104,920 | 105,529 | 96,264 | ||||||||||||||
Gain from derecognition of assets | — | (24,777) | — | ||||||||||||||
Equity in loss of unconsolidated real estate joint venture | 525 | 2,080 | — | ||||||||||||||
Write-off of lease receivables deemed uncollectible | 8,400 | 165 | 190 | ||||||||||||||
Provision for loan losses | 2,653 | — | — | ||||||||||||||
Amortization of acquired below-market leases,
net of acquired above-market leases |
1,331 | (195) | 222 | ||||||||||||||
Straight-line rent amortization | 1,441 | (10,083) | (11,399) | ||||||||||||||
Amortization of tenant inducements | 3,897 | 3,852 | 4,228 | ||||||||||||||
Amortization and write-off of debt financing costs and discounts | 5,471 | 5,264 | 9,565 | ||||||||||||||
Unrealized loss on interest rate cap contracts | 127 | 44 | — | ||||||||||||||
Realized loss (gain) on interest rate swap contracts | 1,779 | — | (1,198) | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Rents, deferred rents and other receivables, net | (4,496) | 299 | (12,179) | ||||||||||||||
Deferred charges, net | (7,053) | (8,497) | (22,209) | ||||||||||||||
Due from affiliates, net | (647) | (2,690) | — | ||||||||||||||
Prepaid and other assets, net | (1,019) | (570) | (82) | ||||||||||||||
Accounts payable and other liabilities | (1,570) | (5,541) | 6,083 | ||||||||||||||
Due to affiliates | 134 | 1,566 | (7,439) | ||||||||||||||
Net cash provided by operating activities | 52,949 | 39,785 | 17,389 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Expenditures for real estate improvements | (58,062) | (127,775) | (90,065) | ||||||||||||||
Net cash used in investing activities | (58,062) | (127,775) | (90,065) |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from secured debt | $ | 305,000 | $ | 277,610 | $ | 1,081,686 | |||||||||||
Principal payments on secured debt | (265,000) | (220,000) | (931,831) | ||||||||||||||
Proceeds from Series B preferred interest | 47,850 | 40,700 | — | ||||||||||||||
Proceeds from senior participating preferred interest | 777 | 538 | — | ||||||||||||||
Distributions to Series B preferred interest | (17,865) | (20,574) | (26,554) | ||||||||||||||
Repurchases of Series B preferred interest | (34,218) | (34,521) | — | ||||||||||||||
Distributions to senior participating preferred interest | (1,146) | (602) | (3,587) | ||||||||||||||
Contributions to additional paid-in capital | 1,000 | 1,710 | 1,615 | ||||||||||||||
Purchase of interest rate cap contracts | (130) | (35) | — | ||||||||||||||
Payment for early extinguishment of debt and
termination of interest rate swap contracts
|
(849) | — | — | ||||||||||||||
Debt financing costs paid | (5,811) | (3,618) | (10,388) | ||||||||||||||
Net cash provided by financing activities | 29,608 | 41,208 | 110,941 | ||||||||||||||
Net change in cash, cash equivalents and
restricted cash |
24,495 | (46,782) | 38,265 | ||||||||||||||
Cash, cash equivalents and restricted cash
at beginning of year |
58,988 | 105,770 | 67,505 | ||||||||||||||
Cash, cash equivalents and restricted cash
at end of year |
$ | 83,483 | $ | 58,988 | $ | 105,770 | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||
Cash paid for interest | $ | 76,873 | $ | 93,020 | $ | 96,074 | |||||||||||
Cash paid for income taxes | $ | 792 | $ | 59 | $ | 1,127 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Supplemental disclosure of non-cash investing
and financing activities: |
|||||||||||||||||
Accrual for current-period additions to real estate investments | $ | 53,760 | $ | 33,812 | $ | 17,179 | |||||||||||
Contribution of investments in real estate, net, to
unconsolidated real estate joint venture |
$ | — | $ | 20,139 | $ | — | |||||||||||
Increase (decrease) in fair value of
interest rate swaps |
$ | 562 | $ | (2,117) | $ | 1,548 | |||||||||||
Writeoff of fully depreciated investments
in real estate |
$ | 36,613 | $ | 37,373 | $ | — | |||||||||||
Writeoff of fully amortized intangible assets | $ | 14,414 | $ | 40,077 | $ | — | |||||||||||
Writeoff of fully amortized intangible liabilities | $ | 6,850 | $ | 5,766 | $ | — | |||||||||||
Noncash contributions to additional paid-in capital | $ | 3,834 | $ | — | $ | — |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash and cash equivalents at beginning of year | $ | 33,964 | $ | 80,421 | $ | 31,958 | |||||||||||
Restricted cash at beginning of year | 25,024 | 25,349 | 35,547 | ||||||||||||||
Cash, cash equivalents and restricted cash at
beginning of year |
$ | 58,988 | $ | 105,770 | $ | 67,505 | |||||||||||
Cash and cash equivalents at end of year | $ | 37,394 | $ | 33,964 | $ | 80,421 | |||||||||||
Restricted cash at end of year | 46,089 | 25,024 | 25,349 | ||||||||||||||
Cash, cash equivalents and restricted cash at
end of year |
$ | 83,483 | $ | 58,988 | $ | 105,770 |
As of December 31, 2020
|
||||||||||||||||||||||||||
Property Type |
March 2020
Billings Collected(1)
|
Second Quarter of 2020
Billings Collected(1)
|
Third Quarter of 2020
Billings Collected(1)
|
Fourth Quarter of 2020
Billings Collected(1)
|
||||||||||||||||||||||
Office | 100 | % | 98 | % | 98 | % | 98 | % | ||||||||||||||||||
Retail | 97 | % | 39 | % | 62 | % | 65 | % | ||||||||||||||||||
Total | 100 | % | 96 | % | 97 | % | 97 | % |
Consideration | $ | 45,000 | ||||||
Investments in real estate, net | $ | 20,139 | ||||||
Cash and cash equivalents | 73 | |||||||
Prepaid and other assets | 11 | |||||||
Carrying amount | 20,223 | |||||||
Gain from derecognition of assets | $ | 24,777 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Straight-line and other deferred rents | $ | 109,196 | $ | 109,859 | |||||||
Tenant inducements receivable | 33,280 | 33,304 | |||||||||
Tenant receivables | 5,057 | 6,027 | |||||||||
Other receivables | 2,079 | 1,854 | |||||||||
Rents, deferred rents and other receivables, gross | 149,612 | 151,044 | |||||||||
Less: accumulated amortization of tenant inducements | 15,973 | 13,034 | |||||||||
Rents, deferred rents and other receivables, net | $ | 133,639 | $ | 138,010 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Intangible Assets | |||||||||||
In-place leases | $ | 46,448 | $ | 47,872 | |||||||
Tenant relationships | 6,900 | 15,397 | |||||||||
Above-market leases | 19,874 | 24,367 | |||||||||
Intangible assets, gross | 73,222 | 87,636 | |||||||||
Less: accumulated amortization | 51,176 | 55,741 | |||||||||
Intangible assets, net | $ | 22,046 | $ | 31,895 | |||||||
Intangible Liabilities | |||||||||||
Below-market leases | $ | 46,945 | $ | 53,795 | |||||||
Less: accumulated amortization | 40,940 | 45,489 | |||||||||
Intangible liabilities, net | $ | 6,005 | $ | 8,306 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Lease income | $ | (1,331) | $ | 195 | $ | (222) | |||||||||||
Depreciation and amortization expense | $ | 6,217 | $ | 8,792 | $ | 9,642 |
In-Place
Leases |
Other
Intangible Assets |
Intangible
Liabilities |
|||||||||||||||
2021 | $ | 3,274 | $ | 2,684 | $ | 1,551 | |||||||||||
2022 | 2,756 | 2,274 | 1,492 | ||||||||||||||
2023 | 1,947 | 1,948 | 794 | ||||||||||||||
2024 | 1,091 | 1,863 | 278 | ||||||||||||||
2025 | 952 | 1,191 | 263 | ||||||||||||||
Thereafter | 1,613 | 453 | 1,627 | ||||||||||||||
Total future amortization/accretion of intangibles | $ | 11,633 | $ | 10,413 | $ | 6,005 |
Maturity Date (1) | Contractual Interest Rates |
Principal Amount
as of December 31, |
|||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Variable-Rate Loans: | |||||||||||||||||||||||||||||
Wells Fargo Center–North Tower (2) | 10/9/2023 |
LIBOR + 1.65%
|
$ | 400,000 | $ | 400,000 | |||||||||||||||||||||||
Wells Fargo Center–North Tower (2) | 10/9/2023 |
LIBOR + 4.00%
|
65,000 | 65,000 | |||||||||||||||||||||||||
Wells Fargo Center–North Tower (2)(3) | 10/9/2023 |
LIBOR + 5.00%
|
35,000 | 35,000 | |||||||||||||||||||||||||
Wells Fargo Center–South Tower (4) | 11/4/2023 |
LIBOR + 1.80%
|
260,796 | 260,796 | |||||||||||||||||||||||||
777 Tower (5) | 10/31/2024 |
LIBOR + 1.60%
|
231,842 | 231,842 | |||||||||||||||||||||||||
777 Tower (6) | 10/31/2024 |
LIBOR + 4.15%
|
43,158 | 43,158 | |||||||||||||||||||||||||
EY Plaza (7) | 10/9/2025 |
LIBOR + 2.86%
|
275,000 | — | |||||||||||||||||||||||||
EY Plaza (7) | 10/9/2025 |
LIBOR + 6.85%
|
30,000 | — | |||||||||||||||||||||||||
Total variable-rate loans | 1,340,796 | 1,035,796 | |||||||||||||||||||||||||||
Fixed-Rate Debt: | |||||||||||||||||||||||||||||
BOA Plaza | 9/1/2024 | 4.05% | 400,000 | 400,000 | |||||||||||||||||||||||||
Gas Company Tower | 8/6/2021 | 3.47% | 319,000 | 319,000 | |||||||||||||||||||||||||
Gas Company Tower | 8/6/2021 | 6.50% | 131,000 | 131,000 | |||||||||||||||||||||||||
FIGat7th | 3/1/2023 | 3.88% | 58,500 | 58,500 | |||||||||||||||||||||||||
Total fixed-rate debt | 908,500 | 908,500 | |||||||||||||||||||||||||||
Debt Refinanced: | |||||||||||||||||||||||||||||
EY Plaza | — | 230,000 | |||||||||||||||||||||||||||
EY Plaza | — | 35,000 | |||||||||||||||||||||||||||
Total debt refinanced | — | 265,000 | |||||||||||||||||||||||||||
Total secured debt | 2,249,296 | 2,209,296 | |||||||||||||||||||||||||||
Less: unamortized debt financing costs | 9,656 | 9,316 | |||||||||||||||||||||||||||
Total secured debt, net | $ | 2,239,640 | $ | 2,199,980 |
2021 | $ | 450,000 | |||
2022 | — | ||||
2023 | 819,296 | ||||
2024 | 675,000 | ||||
2025 | 305,000 | ||||
Total secured debt | $ | 2,249,296 |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Tenant improvements and inducements payable | $ | 47,679 | $ | 29,140 | |||||||
Unearned rent and tenant payables | 27,331 | 23,817 | |||||||||
Accrued capital expenditures and leasing commissions | 15,201 | 18,205 | |||||||||
Accrued expenses and other liabilities | 5,830 | 8,683 | |||||||||
Accounts payable and other liabilities | $ | 96,041 | $ | 79,845 |
Number of
Shares of Series A Preferred Stock |
Series A
Preferred Stock |
Noncontrolling Interests |
Total
Mezzanine Equity |
|||||||||||||||||||||||||||||||||||
Series A-1
Preferred Interest |
Senior
Participating Preferred Interest |
Series B
Preferred Interest |
||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 9,730,370 | $ | 391,400 | $ | 383,510 | $ | 25,548 | $ | 190,291 | $ | 990,749 | |||||||||||||||||||||||||||
Issuance of Series B preferred interest | — | — | ||||||||||||||||||||||||||||||||||||
Dividends | 18,532 | 18,532 | ||||||||||||||||||||||||||||||||||||
Preferred returns | 17,306 | 17,961 | 35,267 | |||||||||||||||||||||||||||||||||||
Redemption measurement adjustments | 1,482 | 1,482 | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling
interests |
— | — | ||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (3,587) | (26,554) | (30,141) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 9,730,370 | 409,932 | 400,816 | 23,443 | 181,698 | 1,015,889 | ||||||||||||||||||||||||||||||||
Issuance of Series B preferred interest | 40,700 | 40,700 | ||||||||||||||||||||||||||||||||||||
Dividends | 18,548 | 18,548 | ||||||||||||||||||||||||||||||||||||
Preferred returns | 17,213 | 18,049 | 35,262 | |||||||||||||||||||||||||||||||||||
Redemption measurement adjustments | (1,017) | (1,017) | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling
interests |
538 | 538 | ||||||||||||||||||||||||||||||||||||
Repurchases of noncontrolling interests | (34,521) | (34,521) | ||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (602) | (20,574) | (21,176) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 9,730,370 | 428,480 | 418,029 | 22,362 | 185,352 | 1,054,223 | ||||||||||||||||||||||||||||||||
Issuance of Series B preferred interest | 47,850 | 47,850 | ||||||||||||||||||||||||||||||||||||
Dividends | 18,548 | 18,548 | ||||||||||||||||||||||||||||||||||||
Preferred returns | 17,213 | 17,708 | 34,921 | |||||||||||||||||||||||||||||||||||
Redemption measurement adjustments | (1,580) | (1,580) | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling
interests |
777 | 777 | ||||||||||||||||||||||||||||||||||||
Repurchases of noncontrolling interests | (34,218) | (34,218) | ||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (1,146) | (17,865) | (19,011) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 9,730,370 | $ | 447,028 | $ | 435,242 | $ | 20,413 | $ | 198,827 | $ | 1,101,510 |
First to: | Series B preferred interest unpaid preferred return | |||||||||||||
Second to: | Series B preferred interest unreturned preferred capital | |||||||||||||
Third, proportionally in respect of
unpaid preferred return to: |
||||||||||||||
Series A preferred interest unpaid preferred return (2) | ||||||||||||||
Series A-1 preferred interest unpaid preferred return (3) | ||||||||||||||
Fourth, proportionally in respect
of unreturned capital to: (2) (4) |
||||||||||||||
Series A preferred interest unreturned capital | ||||||||||||||
Series A-1 preferred interest unreturned capital (3) | ||||||||||||||
And fifth to: | Common interests to Brookfield DTLA and DTLA Holdings (5) |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of year | $ | (2,341) | $ | (224) | $ | (574) | |||||||||||
Net unrealized gains (losses) arising during
the year |
562 | (2,117) | 1,548 | ||||||||||||||
Reclassification of losses (gains) related to
terminated interest rate swaps to other expenses included in net income |
1,779 | — | (1,198) | ||||||||||||||
Net changes | 2,341 | (2,117) | 350 | ||||||||||||||
Balance at end of year | $ | — | $ | (2,341) | $ | (224) |
Notional
Amount |
Strike
Rate (1) |
Expiration
Date |
||||||||||||||||||||||||||||||
Interest Rate Caps: | ||||||||||||||||||||||||||||||||
Wells Fargo Center–North Tower (2) | $ | 400,000 | 3.85 | % | 10/15/2021 | |||||||||||||||||||||||||||
Wells Fargo Center–North Tower (2) | 65,000 | 3.85 | % | 10/15/2021 | ||||||||||||||||||||||||||||
Wells Fargo Center–North Tower (2) | 35,000 | 3.85 | % | 10/15/2021 | ||||||||||||||||||||||||||||
Wells Fargo Center–South Tower (3) | 290,000 | 3.63 | % | 11/4/2022 | ||||||||||||||||||||||||||||
777 Tower | 268,600 | 4.00 | % | 11/10/2021 | ||||||||||||||||||||||||||||
777 Tower | 50,000 | 4.00 | % | 11/10/2021 | ||||||||||||||||||||||||||||
EY Plaza | 275,000 | 4.00 | % | 10/15/2022 | ||||||||||||||||||||||||||||
EY Plaza | 30,000 | 4.00 | % | 10/15/2022 | ||||||||||||||||||||||||||||
Total derivatives not designated
as cash flow hedging instruments |
$ | 1,413,600 |
Fair Value as of December 31, | ||||||||||||||||||||
Balance Sheet Location | 2020 | 2019 | ||||||||||||||||||
Derivatives not designated as
hedging instruments: Interest rate caps |
Prepaid and other assets, net | $ | 5 | $ | 1 | |||||||||||||||
Derivatives designated as
cash flow hedging instruments: Interest rate swaps |
Accounts payable and other liabilities | $ | — | $ | 1,143 |
Gain (Loss)
Recognized in OCL |
(Loss) Gain Reclassified
from AOCL to Consolidated Statements of Operations |
|||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
For the years ended: | ||||||||||||||||||||||||||
December 31, 2020 | $ | 562 | $ | (1,779) | (1) | |||||||||||||||||||||
December 31, 2019 | $ | (2,117) | $ | — | ||||||||||||||||||||||
December 31, 2018 | $ | 1,548 | $ | 1,198 | (2) |
• | Level 1— | Quoted prices (unadjusted) in active markets that are accessible at the measurement date. | |||||||||
• | Level 2— | Observable prices that are based on inputs not quoted in active markets but corroborated by market data. | |||||||||
• | Level 3— | Unobservable prices that are used when little or no market data is available. |
Fair Value Measurements Using | ||||||||||||||||||||||||||
Total
Fair Value |
Quoted Prices in
Active Markets for Identical Assets (Liabilities) (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest rate caps at: | ||||||||||||||||||||||||||
December 31, 2020 | $ | 5 | $ | — | $ | 5 | $ | — | ||||||||||||||||||
December 31, 2019 | $ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest rate swaps at: | ||||||||||||||||||||||||||
December 31, 2020 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
December 31, 2019 | $ | 1,143 | $ | — | $ | 1,143 | $ | — |
As of December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Fair Value | $ | 2,246,225 | $ | 2,210,389 | ||||||||||
Carrying value | $ | 2,239,640 | $ | 2,199,980 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Property management fee expense | $ | 8,035 | $ | 8,479 | $ | 8,111 | |||||||||||
Asset management fee expense | $ | 6,040 | $ | 6,161 | $ | 6,330 | |||||||||||
Leasing and construction management fees | $ | 5,344 | $ | 5,051 | $ | 3,209 | |||||||||||
Development management fees (1) | $ | 1,007 | $ | 991 | $ | — | |||||||||||
General, administrative and reimbursable expenses | $ | 2,492 | $ | 2,865 | $ | 3,007 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Insurance expense (1) | $ | 11,836 | $ | 9,286 | $ | 8,026 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Lease income (1) | $ | 11,443 | $ | 5,916 | $ | 1,928 | |||||||||||
Parking revenue (1) | $ | 1,317 | $ | — | $ | — | |||||||||||
Interest and other revenue | $ | 51 | $ | 208 | $ | — | |||||||||||
Rental property operating and maintenance expense (2) | $ | 577 | $ | 676 | $ | 862 | |||||||||||
Other expenses | $ | 90 | $ | 142 | $ | — | |||||||||||
Interest expense (3) | $ | 1,982 | $ | 613 | $ | — |
2021 | $ | 163,687 | |||
2022 | 153,038 | ||||
2023 | 138,681 | ||||
2024 | 121,851 | ||||
2025 | 108,018 | ||||
Thereafter | 548,065 | ||||
Total future minimum base rents | $ | 1,233,340 |
Quarter | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
2020 | |||||||||||||||||||||||
Total revenue | $ | 75,854 | $ | 68,522 | $ | 70,593 | $ | 70,579 | |||||||||||||||
Total expenses | 89,965 | 83,788 | 86,050 | 88,164 | |||||||||||||||||||
Total other (loss) income | (675) | (28) | 172 | 6 | |||||||||||||||||||
Net loss | (14,786) | (15,294) | (15,285) | (17,579) | |||||||||||||||||||
Net loss (income) attributable to
noncontrolling interests: |
|||||||||||||||||||||||
Series A-1 preferred interest returns | 4,303 | 4,303 | 4,303 | 4,304 | |||||||||||||||||||
Senior participating preferred interest
redemption measurement adjustments |
(225) | (2,081) | (37) | 763 | |||||||||||||||||||
Series B preferred interest returns | 4,208 | 4,567 | 4,689 | 4,244 | |||||||||||||||||||
Series B common interest –
allocation of net income (loss) |
9,822 | 90,090 | (9,889) | 21,720 | |||||||||||||||||||
Net loss attributable to Brookfield DTLA | (32,894) | (112,173) | (14,351) | (48,610) | |||||||||||||||||||
Series A preferred stock dividends | 4,637 | 4,637 | 4,637 | 4,637 | |||||||||||||||||||
Net loss attributable to common interest
holders of Brookfield DTLA |
$ | (37,531) | $ | (116,810) | $ | (18,988) | $ | (53,247) |
Quarter | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
2019 | |||||||||||||||||||||||
Total revenue | $ | 76,207 | $ | 79,166 | $ | 79,612 | $ | 82,860 | |||||||||||||||
Total expenses | 89,540 | 90,383 | 90,815 | 96,465 | |||||||||||||||||||
Total other income (loss) (1)
|
— | 14,688 | (29) | 8,038 | |||||||||||||||||||
Net (loss) income | (13,333) | 3,471 | (11,232) | (5,567) | |||||||||||||||||||
Net loss (income) attributable to
noncontrolling interests: |
|||||||||||||||||||||||
Series A-1 preferred interest returns | 4,303 | 4,303 | 4,303 | 4,304 | |||||||||||||||||||
Senior participating preferred interest
redemption measurement adjustments |
(572) | (179) | 602 | (868) | |||||||||||||||||||
Series B preferred interest returns | 4,091 | 4,591 | 4,966 | 4,401 | |||||||||||||||||||
Series B common interest –
allocation of net income |
9,925 | 18,659 | 5,260 | 1,337 | |||||||||||||||||||
Net loss attributable to Brookfield DTLA | (31,080) | (23,903) | (26,363) | (14,741) | |||||||||||||||||||
Series A preferred stock dividends | 4,637 | 4,637 | 4,637 | 4,637 | |||||||||||||||||||
Net loss attributable to common interest
holders of Brookfield DTLA |
$ | (35,717) | $ | (28,540) | $ | (31,000) | $ | (19,378) |
Encum-
brances |
Initial Cost
to Company |
Costs Capitalized
Subsequent to Acquisition |
Gross Amount at Which
Carried at Close of Period |
Accum-
ulated Depre- ciation (4) |
Year
Acquired or Con- structed (5) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land |
Buildings and
Improve- ments |
Buildings and
Improve- ments |
Land |
Buildings
and Improve- ments (1)(2) |
Total (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles, CA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wells Fargo Center– North Tower
333 S. Grand Avenue
|
$ | 500,000 | $ | 41,024 | $ | 449,576 | $ | 161,626 | $ | 41,024 | $ | 611,202 | $ | 652,226 | $ | 102,555 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||
BOA Plaza
333 S. Hope Street
|
400,000 | 54,163 | 343,976 | 89,657 | 54,163 | 433,633 | 487,796 | 113,545 | 2006 A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Wells Fargo Center– South Tower
355 S. Grand Avenue
|
260,796 | 21,231 | 392,920 | 83,504 | 21,231 | 476,424 | 497,655 | 64,650 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gas Company Tower
525-555 W. Fifth Street
|
450,000 | 20,742 | 392,650 | 80,847 | 20,742 | 473,497 | 494,239 | 76,266 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
EY Plaza
725 S. Figueroa Street
|
305,000 | 47,385 | 242,503 | 93,451 | 47,385 | 335,954 | 383,339 | 86,937 | 2006 A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
777 Tower
777 S. Figueroa Street
|
275,000 | 38,010 | 296,964 | 43,270 | 38,010 | 340,234 | 378,244 | 53,149 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FIGat7th
735 S. Figueroa Street
|
58,500 | — | 44,743 | 29,189 | — | 73,932 | 73,932 | 20,227 | 2013 C | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 2,249,296 | $ | 222,555 | $ | 2,163,332 | $ | 581,544 | $ | 222,555 | $ | 2,744,876 | $ | 2,967,431 | $ | 517,329 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Investments in Real Estate | |||||||||||||||||
Balance at beginning of year | $ | 2,925,575 | $ | 2,834,450 | $ | 2,756,322 | |||||||||||
Additions during the year: | |||||||||||||||||
Improvements | 78,469 | 148,637 | 78,128 | ||||||||||||||
Deductions during the year: | |||||||||||||||||
Dispositions | — | 20,139 | — | ||||||||||||||
Writeoff of fully depreciated investments in real estate | 36,613 | 37,373 | — | ||||||||||||||
Balance at end of year | $ | 2,967,431 | $ | 2,925,575 | $ | 2,834,450 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Accumulated Depreciation | |||||||||||||||||
Balance at beginning of year | $ | 466,405 | $ | 418,205 | $ | 342,465 | |||||||||||
Additions during the year: | |||||||||||||||||
Depreciation expense | 87,537 | 85,573 | 75,740 | ||||||||||||||
Deductions during the year: | |||||||||||||||||
Writeoff of fully depreciated investments in real estate | 36,613 | 37,373 | — | ||||||||||||||
Balance at end of year | $ | 517,329 | $ | 466,405 | $ | 418,205 |
Item 9. | Changes in and Disagreements With Accountants on Accounting | |||||||||||||
and Financial Disclosure. |
Name | Age | Position |
Executive
Officer Since |
|||||||||||||||||
G. Mark Brown | 56 |
Chairman of the Board and Principal
Executive Officer of Brookfield DTLA (also a Managing Partner in Brookfield Asset Management’s real estate group) |
2017 | |||||||||||||||||
Bryan D. Smith | 50 |
Chief Financial Officer of Brookfield DTLA
(also a Managing Director in Brookfield Asset Management’s real estate group) |
2018 |
Name | Age | Position |
Director
Since |
|||||||||||||||||
G. Mark Brown | 56 |
Director (also Chairman of the Board and
Principal Executive Officer of Brookfield DTLA, and a Managing Partner in Brookfield Asset Management’s real estate group) |
2013 | |||||||||||||||||
Michelle L. Campbell | 50 |
Director (also Senior Vice President, Secretary
of Brookfield DTLA and Senior Vice President in Brookfield Asset Management’s real estate group) |
2014 | |||||||||||||||||
Andrew Dakos | 55 | Director | 2017 | |||||||||||||||||
Murray Goldfarb | 46 |
Director (also a Managing Partner in
Brookfield Asset Management’s real estate group) |
2018 | |||||||||||||||||
Phillip Goldstein | 76 | Director | 2017 | |||||||||||||||||
Ian Parker | 56 | Director | 2017 | |||||||||||||||||
Robert L. Stelzl | 75 | Director | 2014 |
Name |
Fees Earned or
Paid in Cash ($) |
Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($) | Total ($) | ||||||||||||||||||||||||||||||||
(a) | (b) | (c) | (d) | (e) | (f) | (g) | ||||||||||||||||||||||||||||||||
Andrew Dakos (1)
|
$ | 65,000 | $ | — | $ | — | $ | — | $ | — | $ | 65,000 | ||||||||||||||||||||||||||
Phillip Goldstein (1)
|
$ | 55,000 | $ | — | $ | — | $ | — | $ | — | $ | 55,000 | ||||||||||||||||||||||||||
Robert L. Stelzl (1)
|
$ | 65,000 | $ | — | $ | — | $ | — | $ | — | $ | 65,000 | ||||||||||||||||||||||||||
Ian Parker (2)
|
$ | 27,500 | $ | — | $ | — | $ | — | $ | — | $ | 27,500 |
Item 12. | Security Ownership of Certain Beneficial Owners and Management | |||||||||||||
and Related Stockholder Matters. |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Property management fee expense | $ | 8,035 | $ | 8,479 | $ | 8,111 | |||||||||||
Asset management fee expense | $ | 6,040 | $ | 6,161 | $ | 6,330 | |||||||||||
Leasing and construction management fees | $ | 5,344 | $ | 5,051 | $ | 3,209 | |||||||||||
Development management fees (1) | $ | 1,007 | $ | 991 | $ | — | |||||||||||
General, administrative and reimbursable expenses | $ | 2,492 | $ | 2,865 | $ | 3,007 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Insurance expense (1) | $ | 11,836 | $ | 9,286 | $ | 8,026 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Lease income (1) | $ | 11,443 | $ | 5,916 | $ | 1,928 | |||||||||||
Parking revenue (1) | $ | 1,317 | $ | — | $ | — | |||||||||||
Interest and other revenue | $ | 51 | $ | 208 | $ | — | |||||||||||
Rental property operating and maintenance expense (2) | $ | 577 | $ | 676 | $ | 862 | |||||||||||
Other expenses | $ | 90 | $ | 142 | $ | — | |||||||||||
Interest expense (3) | $ | 1,982 | $ | 613 | $ | — |
Fees (1) | For the Year Ended December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
Audit fees (2) | $ | 771,000 | $ | 776,100 | ||||||||||
Audit-related fees | — | — | ||||||||||||
Tax fees | — | — | ||||||||||||
All other fees | — | — | ||||||||||||
$ | 771,000 | $ | 776,100 |
(a) | The following documents are filed as part of this Annual Report on Form 10-K: | |||||||||||||||||||
1. | Financial Statements | |||||||||||||||||||
2. | Financial Statement Schedules for the Years Ended December 31, 2020, 2019, and 2018 | |||||||||||||||||||
All financial statement schedules are omitted because they are not applicable, or the | ||||||||||||||||||||
required information is included in the consolidated financial statements or | ||||||||||||||||||||
notes thereto. See Part II, Item 8. “Financial Statements and Supplementary Data.”
|
||||||||||||||||||||
3. | Exhibits (listed by number corresponding to Item 601 of Regulation S-K) |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Articles of Incorporation of Brookfield DTLA Fund Office Trust Investor Inc. | S-4 | 333-189273 | 3.1 | June 12, 2013 | ||||||||||||||||||||||||||||
Second Amended and Restated Bylaws of Brookfield DTLA Fund Office Trust Investor Inc. | 8-K | 001-36135 | 3.2 | August 14, 2014 | ||||||||||||||||||||||||||||
Articles of Incorporation of Brookfield DTLA Fund Office Trust Inc. | S-4 | 333-189273 | 3.3 | June 12, 2013 | ||||||||||||||||||||||||||||
Bylaws of Brookfield DTLA Fund Office Trust Inc. | S-4 | 333-189273 | 3.4 | June 12, 2013 | ||||||||||||||||||||||||||||
Articles of Amendment of Brookfield DTLA Fund Office Trust Inc. | S-4/A | 333-189273 | 3.5 | October 9, 2013 | ||||||||||||||||||||||||||||
Articles Supplementary of Brookfield DTLA Fund Office Trust Investor Inc. 7.625% Series A Cumulative Redeemable Preferred Stock | S-4/A | 333-189273 | 4.1 | August 27, 2013 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Articles Supplementary of Brookfield DTLA Fund Office Trust Investor Inc. 15% Series B Cumulative Non-Voting Preferred Stock | S-4/A | 333-189273 | 4.2 | August 27, 2013 | ||||||||||||||||||||||||||||
Articles Supplementary of Brookfield DTLA Fund Office Trust Inc. 7.625% Series A Cumulative Redeemable Preferred Stock | S-4/A | 333-189273 | 4.3 | August 27, 2013 | ||||||||||||||||||||||||||||
Articles Supplementary of Brookfield DTLA Fund Office Trust Inc. 15% Series B Cumulative Non-Voting Preferred Stock | S-4/A | 333-189273 | 4.4 | August 27, 2013 | ||||||||||||||||||||||||||||
Form of Certificate of 7.625% Series A Cumulative Redeemable Preferred Stock of Brookfield DTLA Fund Office Trust Investor Inc. | 10-K | 001-36135 | 4.1 | April 8, 2014 | ||||||||||||||||||||||||||||
Indemnification Agreement of Brookfield DTLA Fund Office Trust Investor Inc. | 8-K | 001-36135 | 10.1 | November 4, 2013 | ||||||||||||||||||||||||||||
Limited Liability Company Agreement of Brookfield DTLA Fund Properties II LLC | 8-K | 001-36135 | 10.1 | April 1, 2019 | ||||||||||||||||||||||||||||
First Amendment to the Limited Liability Company Agreement of Brookfield DTLA Fund Properties II LLC | ||||||||||||||||||||||||||||||||
Limited Liability Company Agreement of Brookfield DTLA Fund Properties III LLC | 8-K | 001-36135 | 10.2 | April 1, 2019 | ||||||||||||||||||||||||||||
Loan Agreement dated as of February 6, 2018 by and between BOP FIGat7th LLC, as Borrower, and Metropolitan Life Insurance Company, as Lender | 8-K | 001-36135 | 10.3 | April 1, 2019 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Guaranty as of February 6, 2018 by Brookfield DTLA Holdings LLC (“Guarantor”) in favor of Metropolitan Life Insurance Company (“Lender”) | 10-K | 001-36135 | 10.5 | April 1, 2019 | ||||||||||||||||||||||||||||
Mortgage Loan Agreement dated as of September 23, 2020 among EYP Realty, LLC, as Borrower, and Morgan Stanley Bank, N.A. and Wells Fargo Bank, National Association, collectively, as Lenders | 8-K | 001-36135 | 10.1 | March 25, 2021 | ||||||||||||||||||||||||||||
Limited Recourse Guaranty, made as of September 23, 2020 by Brookfield DTLA Holdings LLC, as Guarantor, in favor of Morgan Stanley Bank, N.A. and Wells Fargo Bank, National Association, collectively, as Lender | 8-K | 001-36135 | 10.2 | March 25, 2021 | ||||||||||||||||||||||||||||
Mezzanine Loan
Agreement dated as of September 23, 2020 among EYP Mezzanine, LLC, as Borrower, and Morgan Stanley Mortgage Capital Holdings LLC and Wells Fargo Bank, National Association, collectively, as Lenders |
8-K | 001-36135 | 10.3 | March 25, 2021 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Mezzanine Limited Recourse Guaranty, made as of September 23, 2020 by Brookfield DTLA Holdings LLC, as Guarantor, in favor of Morgan Stanley Mortgage Capital Holdings LLC and Wells Fargo Bank, National Association, collectively, as Lender | 8-K | 001-36135 | 10.4 | March 25, 2021 | ||||||||||||||||||||||||||||
Loan Agreement dated as of September 21, 2018 among North Tower, LLC, as Borrower, the Financial Institutions party hereto and their Assignees under Section 18.15, as Lenders, Citibank, N.A., as Administrative Agent, and Citigroup Global Markets Inc. and Natixis, New York Branch, as Joint Lead Arranger | 8-K | 001-36135 | 10.6 | April 1, 2019 | ||||||||||||||||||||||||||||
Completion Guaranty dated September 21, 2018 by Brookfield DTLA Holdings LLC (the “Guarantor”) in favor of Citibank, N.A. (the “Administrative Agent”) and each of the Lenders | 10-K | 001-36135 | 10.10 | April 1, 2019 | ||||||||||||||||||||||||||||
Limited Recourse Guaranty dated September 21, 2018 by Brookfield DTLA Holdings LLC (the “Guarantor”) in favor of Citibank, N.A. (the “Administrative Agent”) and each of the Lender | 10-K | 001-36135 | 10.11 | April 1, 2019 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Unfunded Obligations Guaranty dated September 21, 2018 by Brookfield DTLA Holdings LLC (the “Guarantor”) in favor of Citibank, N.A. (the “Administrative Agent”) and each of the Lenders | 10-K | 001-36135 | 10.12 | April 1, 2019 | ||||||||||||||||||||||||||||
Loan Extension Notice dated as of August 12, 2020 among North Tower, LLC, as Borrower, the Financial Institutions Party listed therein, as Lenders, Citibank, N.A., as Administrative Agent, and Citigroup Global Markets Inc. and Natixis, New York Branch, as Joint Lead Arranger | ||||||||||||||||||||||||||||||||
Mezzanine A Loan Agreement dated as of September 21, 2018 between North Tower Mezzanine, LLC, as Borrower, and Mirae Asset Daewoo Co., Ltd., as Lender | 8-K | 001-36135 | 10.7 | April 1, 2019 | ||||||||||||||||||||||||||||
Mezzanine A Loan Extension Notice dated September 9, 2020 between North Tower Mezzanine, LLC, as Borrower, and Mirae Asset Daewoo Co., Ltd., as Lender | ||||||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Mezzanine B Loan Agreement dated as of September 21, 2018 between North Tower Mezzanine II, LLC, as Borrower, and Citi Global Markets Realty Corp., as Lender | 8-K | 001-36135 | 10.8 | April 1, 2019 | ||||||||||||||||||||||||||||
Mezzanine B Loan Extension Notice dated August 17, 2020 between North Tower Mezzanine II, LLC, as Borrower, and ORED II Holdings Sub-Holdings 2, LLC, as Lender
|
||||||||||||||||||||||||||||||||
Loan Agreement dated as of July 11, 2016 between Maguire Properties – 555 W. Fifth, LLC and Maguire Properties – 350 S. Figueroa, LLC, collectively, as Borrower, and Deutsche Bank AG, New York Branch and Barclays Bank PLC, collectively, as Lender | 10-K | 001-36135 | 10.7 | March 20, 2017 | ||||||||||||||||||||||||||||
Mezzanine Loan Agreement dated as of July 11, 2016 between Maguire Properties – 555 W. Fifth Mezz I, LLC, as Borrower, and Deutsche Bank AG, New York Branch and Barclays Bank PLC, collectively, as Lender | 10-K | 001-36135 | 10.8 | March 20, 2017 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Guaranty of Recourse Obligations executed as of July 11, 2016 by Brookfield DTLA Holdings LLC, as Guarantor, for the benefit of Deutsche Bank AG, New York Branch and of Barclays Bank PLC, collectively as Lender | 10-K | 001-36135 | 10.9 | March 20, 2017 | ||||||||||||||||||||||||||||
Mezzanine Guaranty of Recourse Obligations executed as of July 11, 2016 by Brookfield DTLA Holdings LLC, as Guarantor, for the benefit of Deutsche Bank AG, New York Branch and of Barclays Bank PLC, collectively as Lender | 10-K | 001-36135 | 10.10 | March 20, 2017 | ||||||||||||||||||||||||||||
Mortgage Loan Agreement dated as of February 5, 2021 among Maguire Properties – 555 W. Fifth, LLC and Maguire Properties – 350 S. Figueroa, LLC, collectively, as Borrowers, and Citi Real Estate Funding Inc. and Morgan Stanley Bank, N.A., collectively, as Lenders | 8-K | 001-36135 | 10.5 | March 25, 2021 | ||||||||||||||||||||||||||||
Limited Recourse Guaranty, made as of February 5, 2021, by Brookfield DTLA Holdings LLC, as Guarantor, in favor of Citi Real Estate Funding Inc. and Morgan Stanley Bank, N.A., collectively, as Lender | 8-K | 001-36135 | 10.6 | March 25, 2021 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Mezzanine A Loan Agreement dated as of February 5, 2021 among Maguire Properties – 555 W. Fifth Mezz I, LLC, as Borrower, and Citigroup Global Markets Realty Corp. and Morgan Stanley Mortgage Capital Holdings LLC, collectively, as Lenders | 8-K | 001-36135 | 10.7 | March 25, 2021 | ||||||||||||||||||||||||||||
Mezzanine A Limited Recourse Guaranty, made as of February 5, 2021, by Brookfield DTLA Holdings LLC, as Guarantor, in favor of Citigroup Global Markets Realty Corp. and Morgan Stanley Mortgage Capital Holdings LLC, collectively, as Lender | 8-K | 001-36135 | 10.8 | March 25, 2021 | ||||||||||||||||||||||||||||
Mezzanine B Loan Agreement dated as of February 5, 2021 among Maguire Properties – 555 W. Fifth Mezz II, LLC, as Borrower, and SBAF Mortgage Fund I/Lender, LLC, as Lender | 8-K | 001-36135 | 10.9 | March 25, 2021 | ||||||||||||||||||||||||||||
Mezzanine B Limited Recourse Guaranty, made as of February 5, 2021, by Brookfield DTLA Holdings LLC, as Guarantor, in favor of SBAF Mortgage Fund I/Lender, LLC, as Lender | 8-K | 001-36135 | 10.10 | March 25, 2021 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Loan Agreement, dated as of October 31, 2019, by and among Maguire Properties – 777 Tower LLC, as Borrower, each of the financial institutions initially a signatory hereto together with their assignees, as Lenders, Wells Fargo Bank, National Association, as Administrative Agent, and Wells Fargo Securities LLC, as Sole Lead
Arranger and Sole Bookrunner |
8-K | 001-36135 | 10.1 | March 26, 2020 | ||||||||||||||||||||||||||||
Limited Guaranty, made as of October 31, 2019, by Brookfield DTLA Holdings LLC, as Guarantor, in favor of Wells Fargo Bank, National Association, as Administrative Agent on behalf of the Lenders and each of the Lenders party to the Loan Agreement | 8-K | 001-36135 | 10.2 | March 26, 2020 | ||||||||||||||||||||||||||||
Mezzanine Loan Agreement, dated as of October 31, 2019, by and among, 777 Tower Mezzanine, LLC, as Borrower, and Mesa West Core Lending Fund, LLC, as Lender | 8-K | 001-36135 | 10.3 | March 26, 2020 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Mezzanine Limited Guaranty, made as of October 31, 2019, by Brookfield DTLA Holdings LLC, as Guarantor, in favor of Mesa West Core Lending Fund, LLC, as Lender | 8-K | 001-36135 | 10.4 | March 26, 2020 | ||||||||||||||||||||||||||||
Loan Agreement dated as of November 5, 2018 by and among Maguire Properties–355 S. Grand, LLC, as Borrower, Landesbank Hessen-Thüringen Girozentrale, as Administrative Agent, Barclays Bank PLC, as Syndication Agent, Landesbank Hessen-Thüringen Girozentrale, Barclays Bank PLC and Natixis, New York Branch, as Joint Lead Arrangers. Landesbank Hessen-Thüringen Girozentrale as Hedge Coordinator, and the Financial Institutions now or hereafter signatories hereto and their assignees, as Lenders | 8-K | 001-36135 | 10.9 | April 1, 2019 | ||||||||||||||||||||||||||||
Limited Guaranty made as of November 5, 2018 by Brookfield DTLA Holdings LLC (“Guarantor”) in favor of Landesbank Hessen-Thüringen Girozentrale, New York Branch, as Administrative Agent on behalf of the Lenders (together with its successors and assigns, “Administrative Agent”) and each of the Lenders party to the Loan Agreement | 8-K | 001-36135 | 10.10 | April 1, 2019 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Loan Agreement, dated as of August 7, 2014, among 333 South Hope Co. LLC and 333 South Hope Plant LLC, collectively, as Borrower, Wells Fargo Bank, National Association, as Lender, and Citigroup Global Markets Realty Corp., as Lender | 10-K | 001-36135 | 10.24 | March 31, 2015 | ||||||||||||||||||||||||||||
Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of August 7, 2014, by 333 South Hope Co. LLC and 333 South Hope Plant LLC, collectively, as grantor, to Fidelity National Title Company, as trustee, for the benefit of Wells Fargo Bank, National Association and Citigroup Global Markets Realty Corp., collectively, as beneficiary | 10-K | 001-36135 | 10.25 | March 31, 2015 | ||||||||||||||||||||||||||||
Guaranty of Recourse Obligations dated as of August 7, 2014 | 10-K | 001-36135 | 10.26 | March 31, 2015 | ||||||||||||||||||||||||||||
Reserve Guaranty dated as of August 7, 2014 | 10-K | 001-36135 | 10.27 | March 31, 2015 | ||||||||||||||||||||||||||||
Side Letter regarding Reserve Guaranty dated as of August 7, 2014 | 10-K | 001-36135 | 10.28 | March 31, 2015 | ||||||||||||||||||||||||||||
List of Subsidiaries of the Registrant as of December 31, 2020 | ||||||||||||||||||||||||||||||||
Certification of Principal Executive Officer dated March 25, 2021 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
Certification of Principal Financial Officer dated March 25, 2021 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||||||||||||||||||||
Certification of Principal Executive Officer and Principal Financial Officer dated March 25, 2021 pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) | ||||||||||||||||||||||||||||||||
(b) | Exhibits Required by Item 601 of Regulation S-K | |||||||||||||||||||
See Item 3 above. | ||||||||||||||||||||
(c) | Financial Statement Schedules | |||||||||||||||||||
See Item 2 above. | ||||||||||||||||||||
__________ | ||||||||||||||||||||
* | Filed herewith. | |||||||||||||||||||
** | Furnished herewith. | |||||||||||||||||||
(1) | This exhibit will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. |
Date: | March 25, 2021 |
BROOKFIELD DTLA FUND OFFICE
TRUST INVESTOR INC. |
|||||||||||
Registrant | |||||||||||
By: | /s/ G. MARK BROWN | ||||||||||
G. Mark Brown | |||||||||||
Chairman of the Board | |||||||||||
(Principal executive officer) | |||||||||||
By: | /s/ BRYAN D. SMITH | ||||||||||
Bryan D. Smith | |||||||||||
Chief Financial Officer | |||||||||||
(Principal financial officer) | |||||||||||
Date: | March 25, 2021 | By: | /s/ G. MARK BROWN | ||||||||
G. Mark Brown
Chairman of the Board (Principal executive officer) |
|||||||||||
March 25, 2021 | By: | /s/ BRYAN D. SMITH | |||||||||
Bryan D. Smith
Chief Financial Officer (Principal financial and accounting officer) |
|||||||||||
March 25, 2021 | By: | /s/ MICHELLE L. CAMPBELL | |||||||||
Michelle L. Campbell
Senior Vice President, Secretary and Director |
|||||||||||
March 25, 2021 | By: | /s/ ANDREW DAKOS | |||||||||
Andrew Dakos
Director |
|||||||||||
March 25, 2021 | By: | /s/ MURRAY GOLDFARB | |||||||||
Murray Goldfarb
Director |
|||||||||||
March 25, 2021 | By: | /s/ PHILLIP GOLDSTEIN | |||||||||
Phillip Goldstein
Director |
|||||||||||
March 25, 2021 | By: | /s/ IAN PARKER | |||||||||
Ian Parker
Director |
|||||||||||
March 25, 2021 | By: | /s/ ROBERT L. STELZL | |||||||||
Robert L. Stelzl
Director |
North Tower, LLC
By:/s/Jason Kirschner
Name: Jason Kirschner
Title: Authorized Signatory
|
|
North Tower Mezzanine, LLC
By:/s/ Jason Kirschner
Name: Jason Kirschner
Title: Authorized Signatory
|
|
North Tower Mezzanine II, LLC
By:/s/Jason Kirschner
Name: Jason Kirschner
Title: Authorized Signatory
|
|
Subsidiaries |
Jurisdiction
In Which Organized |
Percentage of
Voting Securities Owned Directly or Indirectly by Brookfield DTLA Fund Office Trust Investor Inc. |
||||||||||||
Brookfield DTLA Fund Office Trust Inc. | Maryland | 100.0 | % | |||||||||||
MPG Office LLC | Maryland | 100.0 | % | |||||||||||
Brookfield DTLA Fund Properties II LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 333 South Grand REIT LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 333 Grand Peak TRS LLC | Delaware | 100.0 | % | |||||||||||
North Tower Mezzanine II, LLC | Delaware | 100.0 | % | |||||||||||
North Tower Mezzanine, LLC | Delaware | 100.0 | % | |||||||||||
North Tower, LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 333 Grand
Oaktree TRS LLC |
Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 333 Grand
Doubleline TRS LLC |
Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 555 West 5th REIT LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 350 S. Figueroa Mezzanine, LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 555 W. Fifth Mezzanine, LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 555 W. Fifth Mezz III, LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 555 W. Fifth Mezz II, LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 555 W. Fifth
Mezz I, LLC |
Delaware | 100.0 | % | |||||||||||
Maguire Properties – 555 W. Fifth, LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 350 S. Figueroa, LLC
|
Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 355 South Grand REIT LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 355 S. Grand, LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 777 South Figueroa REIT LLC | Delaware | 100.0 | % | |||||||||||
777 Tower Mezzanine, LLC | Delaware | 100.0 | % | |||||||||||
Maguire Properties – 777 Tower, LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA Fund Properties III LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 725 South Figueroa REIT LLC | Delaware | 100.0 | % | |||||||||||
EYP Realty Holdings, LLC | Delaware | 100.0 | % | |||||||||||
EYP Mezzanine, LLC | Delaware | 100.0 | % | |||||||||||
EYP Realty, LLC | Delaware | 100.0 | % |
Subsidiaries |
Jurisdiction
In Which Organized |
Percentage of
Voting Securities Owned Directly or Indirectly by Brookfield DTLA Fund Office Trust Investor Inc. |
||||||||||||
Brookfield DTLA Figat7th REIT LLC | Delaware | 100.0 | % | |||||||||||
BOP Figat7th LLC | Delaware | 100.0 | % | |||||||||||
BOP Figat7th Parking LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA 333 South Hope REIT LLC | Delaware | 100.0 | % | |||||||||||
333 South Hope Mezz LLC | Delaware | 100.0 | % | |||||||||||
333 South Hope Co. LLC | Delaware | 100.0 | % | |||||||||||
333 South Hope Plant LLC | Delaware | 100.0 | % | |||||||||||
Brookfield DTLA TRS Inc. | Delaware | 87.5 | % |
Date: March 25, 2021 | By: | /s/ G. MARK BROWN | ||||||
G. Mark Brown | ||||||||
Chairman of the Board | ||||||||
(Principal executive officer) |
Date: March 25, 2021 | By: | /s/ BRYAN D. SMITH | ||||||
Bryan D. Smith | ||||||||
Chief Financial Officer | ||||||||
(Principal financial officer) |
Date: March 25, 2021 | By: | /s/ G. MARK BROWN | ||||||
G. Mark Brown | ||||||||
Chairman of the Board | ||||||||
(Principal executive officer) |
By: | /s/ BRYAN D. SMITH | |||||||
Bryan D. Smith | ||||||||
Chief Financial Officer | ||||||||
(Principal financial officer) |