(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, 2021 |
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 | |||||||||||
Item 16. | |||||||||||
Percentage Leased | Annualized Rent (1) | Annualized Rent $/RSF (2) | |||||||||||||||
December 31, 2019 | 82.9 | % | $ | 168,904,581 | $ | 26.87 | |||||||||||
December 31, 2020 | 79.1 | % | $ | 165,568,312 | $ | 27.62 | |||||||||||
December 31, 2021 | 77.2 | % | $ | 167,310,265 | $ | 28.57 |
Leasing Activity | Percentage Leased | ||||||||||
Leased square feet as of December 31, 2020 | 5,995,517 | 79.1 | % | ||||||||
Contractual expirations and early terminations | (632,280) | (8.4) | % | ||||||||
New leases | 142,516 | 1.9 | % | ||||||||
Renewals | 349,851 | 4.6 | % | ||||||||
Leased square feet as of December 31, 2021 | 5,855,604 | 77.2 | % |
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 | % | 85.1 | % | $ | 35,036,449 | $ | 29.29 | ||||||||||||||
Wells Fargo Center–North Tower | 1 | 39 | 2013 | 1,400,639 | 18.5 | % | 79.0 | % | 33,752,544 | 30.49 | ||||||||||||||||
Gas Company Tower | 1 | 26 | 2013 | 1,345,163 | 17.8 | % | 73.3 | % | 26,936,638 | 27.32 | ||||||||||||||||
EY Plaza | 1 | 44 | 2006 | 963,682 | 12.7 | % | 78.9 | % | 21,967,390 | 28.90 | ||||||||||||||||
FIGat7th | 1 | 30 | 2013 | 316,250 | 4.2 | % | 89.4 | % | 6,743,412 | 23.84 | ||||||||||||||||
Wells Fargo Center–South Tower | 1 | 21 | 2013 | 1,124,960 | 14.8 | % | 63.1 | % | 20,189,036 | 28.45 | ||||||||||||||||
777 Tower | 1 | 49 | 2013 | 1,024,835 | 13.5 | % | 79.4 | % | 22,684,796 | 27.87 | ||||||||||||||||
7 | 237 | 7,580,957 | 100.0 | % | 77.2 | % | $ | 167,310,265 | $ | 28.57 |
Tenant | Annualized Rent (1) | % of Total Annualized Rent | Leased Square Feet | % of Total Leased Square Feet | Year of Expiry | ||||||||||||||||||||||||||||||
1 | The Capital Group Companies | $ | 10,565,737 | 6.3 | % | 403,547 | 6.8 | % | Various | ||||||||||||||||||||||||||
2 | Southern California Gas Company | 8,582,440 | 5.1 | % | 350,998 | 6.0 | % | 2026 | |||||||||||||||||||||||||||
3 | Latham & Watkins LLP | 8,362,250 | 5.0 | % | 245,206 | 4.2 | % | Various | |||||||||||||||||||||||||||
4 | Wells Fargo Bank National Association | 7,498,860 | 4.5 | % | 293,383 | 5.0 | % | 2023 | |||||||||||||||||||||||||||
5 | Bank of America N.A. | 7,330,488 | 4.4 | % | 209,310 | 3.6 | % | 2029 | |||||||||||||||||||||||||||
6 | Gibson, Dunn & Crutcher LLP | 6,386,475 | 3.8 | % | 215,155 | 3.7 | % | 2035 | |||||||||||||||||||||||||||
7 | Oaktree Capital Management, L.P. | 5,965,296 | 3.6 | % | 208,148 | 3.6 | % | 2030 | |||||||||||||||||||||||||||
8 | Sheppard, Mullin, Richter | 5,083,470 | 3.0 | % | 173,959 | 3.0 | % | 2025 | |||||||||||||||||||||||||||
9 | Sidley Austin (CA) LLP | 3,789,054 | 2.3 | % | 135,798 | 2.3 | % | 2024 | |||||||||||||||||||||||||||
10 | Ernst & Young U.S. LLP | 3,720,879 | 2.2 | % | 127,613 | 2.2 | % | 2032 | |||||||||||||||||||||||||||
$ | 67,284,949 | 40.2 | % | 2,363,117 | 40.4 | % |
Tenant | 2022 | 2023 | 2024 | 2025 | 2026 | Beyond | Total | Year of Final Expiry | |||||||||||||||||||||||||||||||||||||||||||||
1 | The Capital Group Companies | 53,316 | — | — | — | — | 350,231 | 403,547 | 2033 | ||||||||||||||||||||||||||||||||||||||||||||
2 | Southern California Gas Company | — | — | — | — | 350,998 | — | 350,998 | 2026 | ||||||||||||||||||||||||||||||||||||||||||||
3 | Latham & Watkins LLP | — | — | — | 162,326 | — | 82,880 | 245,206 | 2031 | ||||||||||||||||||||||||||||||||||||||||||||
4 | Wells Fargo Bank National Association | — | 293,383 | — | — | — | — | 293,383 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
5 | Bank of America N.A. | — | — | — | — | — | 209,310 | 209,310 | 2029 | ||||||||||||||||||||||||||||||||||||||||||||
6 | Gibson, Dunn & Crutcher LLP | — | — | — | — | — | 215,155 | 215,155 | 2035 | ||||||||||||||||||||||||||||||||||||||||||||
7 | Oaktree Capital Management, L.P. | — | — | — | — | — | 208,148 | 208,148 | 2030 | ||||||||||||||||||||||||||||||||||||||||||||
8 | Sheppard, Mullin, Richter | — | — | — | 173,959 | — | — | 173,959 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
9 | Sidley Austin (CA) LLP | — | — | 135,798 | — | — | — | 135,798 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
10 | Ernst & Young U.S. LLP | — | — | — | — | — | 127,613 | 127,613 | 2032 | ||||||||||||||||||||||||||||||||||||||||||||
Leased square feet expiring by year | 53,316 | 293,383 | 135,798 | 336,285 | 350,998 | 1,193,337 | 2,363,117 | ||||||||||||||||||||||||||||||||||||||||||||||
Percentage of leased square feet expiring by year | 0.9% | 5.2% | 2.3% | 5.7% | 6.0% | 20.3% | 40.4% |
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) | ||||||||||||||||||||||||||||||||
2022 | 304,641 | 5.2 | % | $ | 7,981,594 | 4.8 | % | $ | 26.20 | $ | 26.75 | |||||||||||||||||||||||||||
2023 | 983,709 | 16.7 | % | 25,586,271 | 15.3 | % | 26.01 | 27.35 | ||||||||||||||||||||||||||||||
2024 | 544,819 | 9.3 | % | 16,224,710 | 9.7 | % | 29.78 | 32.15 | ||||||||||||||||||||||||||||||
2025 | 729,727 | 12.5 | % | 21,979,377 | 13.1 | % | 30.12 | 32.43 | ||||||||||||||||||||||||||||||
2026 | 571,061 | 9.8 | % | 14,819,033 | 8.9 | % | 25.95 | 29.57 | ||||||||||||||||||||||||||||||
2027 | 296,212 | 5.1 | % | 9,019,655 | 5.4 | % | 30.45 | 35.95 | ||||||||||||||||||||||||||||||
2028 | 104,486 | 1.8 | % | 3,199,361 | 1.9 | % | 30.62 | 39.24 | ||||||||||||||||||||||||||||||
2029 | 303,025 | 5.2 | % | 9,863,464 | 5.9 | % | 32.55 | 42.04 | ||||||||||||||||||||||||||||||
2030 | 329,831 | 5.6 | % | 10,178,585 | 6.1 | % | 30.86 | 39.96 | ||||||||||||||||||||||||||||||
2031 | 308,309 | 5.3 | % | 8,996,457 | 5.4 | % | 29.18 | 39.71 | ||||||||||||||||||||||||||||||
Thereafter | 1,379,784 | 23.5 | % | 39,461,758 | 23.5 | % | 28.60 | 42.12 | ||||||||||||||||||||||||||||||
Total expiring leases | 5,855,604 | 100.0 | % | $ | 167,310,265 | 100.0 | % | $ | 28.57 | $ | 34.86 | |||||||||||||||||||||||||||
Currently available | 1,725,353 | |||||||||||||||||||||||||||||||||||||
Total rentable square feet | 7,580,957 |
Principal Amount | Percent of Total Debt | Effective Interest Rate | Weighted Average Term to Maturity (3) | ||||||||||||||||||||
Fixed-rate | $ | 458,500 | 20 | % | 4.03 | % | 3 years | ||||||||||||||||
Variable-rate (1) (2) | 1,805,796 | 80 | % | 2.62 | % | 3 years | |||||||||||||||||
$ | 2,264,296 | 100 | % | 2.91 | % | 3 years |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters | |||||||||||||
and Issuer Purchases of Equity Securities. |
Name | Property Type | Rentable Square Feet | Ownership Percentage | Occupancy (1) | Weighted-Average Remaining Lease Term (Years) (2) | |||||||||||||||||||||||||||
Bank of America Plaza (“BOA Plaza”) | Office (4) | 1,405,428 | 100% | 85.1% | 6.6 | |||||||||||||||||||||||||||
Wells Fargo Center–North Tower | Office (4) | 1,400,639 | 100% | 79.0% | 6.9 | |||||||||||||||||||||||||||
Gas Company Tower | Office (4) | 1,345,163 | 100% | 73.3% | 5.7 | |||||||||||||||||||||||||||
EY Plaza | Office (4) | 963,682 | 100% | 78.9% | 6.7 | |||||||||||||||||||||||||||
Wells Fargo Center–South Tower | Office (4) | 1,124,960 | 100% | 63.1% | 5.0 | |||||||||||||||||||||||||||
777 Tower | Office (4) | 1,024,835 | 100% | 79.4% | 4.3 | |||||||||||||||||||||||||||
FIGat7th | Retail | 316,250 | 100% | 89.4% | 7.1 | |||||||||||||||||||||||||||
755 South Figueroa | Multifamily (3) | N/A | 33.6% | N/A | N/A | |||||||||||||||||||||||||||
Total | 7,580,957 | 77.2% | 6.0 |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 % Change | 2020 vs. 2019 % Change | |||||||||||||||||||||||||
Parking revenue | $ | 25,426 | $ | 27,775 | $ | 39,715 | (8) | % | (30) | % | |||||||||||||||||||
Parking expense | (8,570) | (10,648) | (10,373) | (20) | % | 3 | % | ||||||||||||||||||||||
Parking net operating income | $ | 16,856 | $ | 17,127 | $ | 29,342 | (2) | % | (42) | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Property Type | Second Quarter of 2020 Billings Collected(1) | Third Quarter of 2020 Billings Collected(1) | Fourth Quarter of 2020 Billings Collected(1) | First Quarter of 2021 Billings Collected(1) | Second Quarter of 2021 Billings Collected(1) | Third Quarter of 2021 Billings Collected(1) | Fourth Quarter of 2021 Billings Collected(1) | |||||||||||||||||||||||||||||||||||||
Office | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 99 | % | ||||||||||||||||||||||||||||||
Retail | 100 | % | 98 | % | 98 | % | 96 | % | 96 | % | 90 | % | 91 | % | ||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 99 | % | 99 | % |
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 | % |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash and cash equivalents | $ | 38,901 | $ | 37,394 | |||||||
Unused capital contribution commitments available on Series B preferred interest | 21,178 | 46,678 | |||||||||
Availability under secured debt to fund approved leasing costs | 72,804 | 72,804 | |||||||||
Total Liquidity | $ | 132,883 | $ | 156,876 |
Interest Rate Type | Effective Date | Maturity Date/Term to Maturity | Interest Rate as of Effective Date | Principal Amount | |||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||
Gas Company Tower | Variable | 2/5/2021 | 2/9/2026 (1) | 2.01 | % | $ | 350,000 | ||||||||||||||||||||||
Gas Company Tower | Variable | 2/5/2021 | 2/9/2026 (1) | 5.12 | % | 65,000 | |||||||||||||||||||||||
Gas Company Tower | Variable | 2/5/2021 | 2/9/2026 (1) | 7.87 | % | 50,000 | |||||||||||||||||||||||
Weighted average/total | 4 years | 3.07 | % | $ | 465,000 | ||||||||||||||||||||||||
Repayments of debt | |||||||||||||||||||||||||||||
Gas Company Tower | Fixed | 2/5/2021 | 8/6/2021 | 3.47 | % | $ | 319,000 | ||||||||||||||||||||||
Gas Company Tower | Fixed | 2/5/2021 | 8/6/2021 | 6.50 | % | 131,000 | |||||||||||||||||||||||
Weighted average/total | N/A | 4.35 | % | $ | 450,000 |
Principal Amount | Percent of Total Debt | Effective Interest Rate | Weighted Average Term to Maturity (3) | ||||||||||||||||||||
Fixed-rate | $ | 458,500 | 20 | % | 4.03 | % | 3 years | ||||||||||||||||
Variable-rate (1) (2) | 1,805,796 | 80 | % | 2.62 | % | 3 years | |||||||||||||||||
Total secured debt | $ | 2,264,296 | 100 | % | 2.91 | % | 3 years |
2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Principal payments on secured debt (1)(2) | $ | — | $ | 819,296 | $ | 675,000 | $ | 305,000 | $ | 465,000 | $ | — | $ | 2,264,296 | |||||||||||||||||||||||||||
Interest payments – | |||||||||||||||||||||||||||||||||||||||||
Fixed-rate debt (3) | 18,726 | 16,803 | 11,025 | — | — | — | 46,554 | ||||||||||||||||||||||||||||||||||
Variable-rate debt (4) | 47,986 | 44,551 | 30,241 | 22,471 | 1,583 | — | 146,832 | ||||||||||||||||||||||||||||||||||
$ | 66,712 | $ | 880,650 | $ | 716,266 | $ | 327,471 | $ | 466,583 | $ | — | $ | 2,457,682 |
Leasing Activity | Percentage Leased | ||||||||||
Leased square feet as of December 31, 2020 | 5,995,517 | 79.1 | % | ||||||||
Contractual expirations and early terminations | (632,280) | (8.4) | % | ||||||||
New leases | 142,516 | 1.9 | % | ||||||||
Renewals | 349,851 | 4.6 | % | ||||||||
Leased square feet as of December 31, 2021 | 5,855,604 | 77.2 | % |
Tenant | Property | Leased Square Feet | ||||||||||||
Doubleline Capital LP (1) | Wells Fargo Center–North Tower | 87,524 | ||||||||||||
Latham & Watkins LLP | Wells Fargo Center–South Tower, Gas Company Tower | 76,607 | ||||||||||||
Convene | Wells Fargo Center–North Tower | 51,954 | ||||||||||||
Jackson Lewis LLP (1) | EY Plaza | 49,508 | ||||||||||||
CallisonRTKL (2) | BOA Plaza | 46,951 | ||||||||||||
Nossaman LLP (3) | 777 Tower | 43,760 | ||||||||||||
General Service Administration of the United States of America | Gas Company Tower | 36,077 | ||||||||||||
Los Angeles Corporate Fitness, Inc. (1) | FIGat7th | 34,730 | ||||||||||||
Yukevich Cavanaugh (1) | Wells Fargo Center–South Tower | 25,986 | ||||||||||||
Pillsbury Winthrop Shaw Pittman LLP | EY Plaza | 13,254 | ||||||||||||
Wells Fargo Bank, N.A. | Wells Fargo Center–North Tower | 12,382 | ||||||||||||
Total | 478,733 |
Square Feet | ||||||||||||||||||||||||||||||||
Property | Net Building Rentable | % of Net Rentable | % Leased | Annualized Rent (1) | Annualized Rent $/RSF (2) | |||||||||||||||||||||||||||
BOA Plaza | 1,405,428 | 18.5 | % | 85.1 | % | $ | 35,036,449 | $ | 29.29 | |||||||||||||||||||||||
Wells Fargo Center–North Tower | 1,400,639 | 18.5 | % | 79.0 | % | 33,752,544 | 30.49 | |||||||||||||||||||||||||
Gas Company Tower | 1,345,163 | 17.8 | % | 73.3 | % | 26,936,638 | 27.32 | |||||||||||||||||||||||||
EY Plaza | 963,682 | 12.7 | % | 78.9 | % | 21,967,390 | 28.90 | |||||||||||||||||||||||||
FIGat7th | 316,250 | 4.2 | % | 89.4 | % | 6,743,412 | 23.84 | |||||||||||||||||||||||||
Wells Fargo Center–South Tower | 1,124,960 | 14.8 | % | 63.1 | % | 20,189,036 | 28.45 | |||||||||||||||||||||||||
777 Tower | 1,024,835 | 13.5 | % | 79.4 | % | 22,684,796 | 27.87 | |||||||||||||||||||||||||
7,580,957 | 100.0 | % | 77.2 | % | $ | 167,310,265 | $ | 28.57 |
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) | ||||||||||||||||||||||||||||||||
2022 | 304,641 | 5.2 | % | $ | 7,981,594 | 4.8 | % | $ | 26.20 | $ | 26.75 | |||||||||||||||||||||||||||
2023 | 983,709 | 16.7 | % | 25,586,271 | 15.3 | % | 26.01 | 27.35 | ||||||||||||||||||||||||||||||
2024 | 544,819 | 9.3 | % | 16,224,710 | 9.7 | % | 29.78 | 32.15 | ||||||||||||||||||||||||||||||
2025 | 729,727 | 12.5 | % | 21,979,377 | 13.1 | % | 30.12 | 32.43 | ||||||||||||||||||||||||||||||
2026 | 571,061 | 9.8 | % | 14,819,033 | 8.9 | % | 25.95 | 29.57 | ||||||||||||||||||||||||||||||
2027 | 296,212 | 5.1 | % | 9,019,655 | 5.4 | % | 30.45 | 35.95 | ||||||||||||||||||||||||||||||
2028 | 104,486 | 1.8 | % | 3,199,361 | 1.9 | % | 30.62 | 39.24 | ||||||||||||||||||||||||||||||
2029 | 303,025 | 5.2 | % | 9,863,464 | 5.9 | % | 32.55 | 42.04 | ||||||||||||||||||||||||||||||
2030 | 329,831 | 5.6 | % | 10,178,585 | 6.1 | % | 30.86 | 39.96 | ||||||||||||||||||||||||||||||
2031 | 308,309 | 5.3 | % | 8,996,457 | 5.4 | % | 29.18 | 39.71 | ||||||||||||||||||||||||||||||
Thereafter | 1,379,784 | 23.5 | % | 39,461,758 | 23.5 | % | 28.60 | 42.12 | ||||||||||||||||||||||||||||||
Total expiring leases | 5,855,604 | 100.0 | % | $ | 167,310,265 | 100.0 | % | $ | 28.57 | $ | 34.86 | |||||||||||||||||||||||||||
Currently available | 1,725,353 | |||||||||||||||||||||||||||||||||||||
Total rentable square feet | 7,580,957 |
For the Year Ended December 31, | Dollar Change | ||||||||||||||||
2021 | 2020 | ||||||||||||||||
Net cash provided by operating activities | $ | 61,652 | $ | 52,949 | $ | 8,703 | |||||||||||
Net cash used in investing activities | $ | (23,836) | $ | (58,062) | $ | 34,226 | |||||||||||
Net cash (used in) provided by financing activities | $ | (33,076) | $ | 29,608 | $ | (62,684) |
For the Year Ended December 31, | Increase/ (Decrease) | % Change | |||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Lease income | $ | 257.4 | $ | 256.7 | $ | 0.7 | — | % | |||||||||||||||
Parking | 25.4 | 27.8 | (2.4) | (9) | % | ||||||||||||||||||
Interest and other | 1.0 | 1.0 | — | — | % | ||||||||||||||||||
Total revenue | 283.8 | 285.5 | (1.7) | (1) | % | ||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Rental property operating and maintenance | 97.4 | 96.3 | 1.1 | 1 | % | ||||||||||||||||||
Real estate taxes | 39.7 | 39.3 | 0.4 | 1 | % | ||||||||||||||||||
Parking | 8.6 | 10.6 | (2.0) | (19) | % | ||||||||||||||||||
Other expenses | 8.6 | 14.0 | (5.4) | (39) | % | ||||||||||||||||||
Depreciation and amortization | 104.0 | 104.9 | (0.9) | (1) | % | ||||||||||||||||||
Interest | 79.7 | 82.8 | (3.1) | (4) | % | ||||||||||||||||||
Total expenses | 338.0 | 347.9 | (9.9) | (3) | % | ||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||
Equity in earning (loss) of unconsolidated real estate joint venture | 0.8 | (0.5) | 1.3 | (260) | % | ||||||||||||||||||
Total other income (expense) | 0.8 | (0.5) | 1.3 | (260) | % | ||||||||||||||||||
Net loss | $ | (53.4) | $ | (62.9) | $ | 9.5 | (15) | % |
Notional Value | Strike Rate | Effective Date | Expiration Date | Fair Value | ||||||||||||||||||||||||||||
Wells Fargo Center–North Tower | $ | 400,000 | 2.57 | % | 10/15/2021 | 10/15/2022 | $ | 7 | ||||||||||||||||||||||||
Wells Fargo Center–North Tower | 65,000 | 2.57 | % | 10/15/2021 | 10/15/2022 | 1 | ||||||||||||||||||||||||||
Wells Fargo Center–North Tower | 35,000 | 2.57 | % | 10/15/2021 | 10/15/2022 | 1 | ||||||||||||||||||||||||||
Wells Fargo Center–South Tower | 290,000 | 3.63 | % | 11/4/2020 | 11/4/2022 | 4 | ||||||||||||||||||||||||||
777 Tower | 268,600 | 4.00 | % | 11/10/2021 | 11/10/2022 | 3 | ||||||||||||||||||||||||||
777 Tower | 50,000 | 4.00 | % | 11/10/2021 | 11/10/2022 | 1 | ||||||||||||||||||||||||||
EY Plaza | 275,000 | 4.00 | % | 9/22/2020 | 10/15/2022 | 2 | ||||||||||||||||||||||||||
EY Plaza | 30,000 | 4.00 | % | 9/22/2020 | 10/15/2022 | — | ||||||||||||||||||||||||||
Gas Company Tower | 350,000 | 4.00 | % | 2/3/2021 | 2/15/2023 | 20 | ||||||||||||||||||||||||||
Gas Company Tower | 65,000 | 4.00 | % | 2/3/2021 | 2/15/2023 | 4 | ||||||||||||||||||||||||||
Gas Company Tower | 50,000 | 4.00 | % | 2/3/2021 | 2/15/2023 | 3 | ||||||||||||||||||||||||||
Total | $ | 1,878,600 | $ | 46 |
Fair Value of | |||||||||||
Interest Expense | Secured Debt | ||||||||||
50 basis point increase | $ | 9,154 | $ | (6,826) | |||||||
50 basis point decrease | $ | (8,936) | $ | 3,791 |
Page | |||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
ASSETS | |||||||||||
Investments in Real Estate: | |||||||||||
Land | $ | 222,555 | $ | 222,555 | |||||||
Buildings and improvements | 2,308,836 | 2,307,762 | |||||||||
Tenant improvements | 418,460 | 437,114 | |||||||||
Investments in real estate, gross | 2,949,851 | 2,967,431 | |||||||||
Less: accumulated depreciation | 580,403 | 517,329 | |||||||||
Investments in real estate, net | 2,369,448 | 2,450,102 | |||||||||
Investment in unconsolidated real estate joint venture | 43,191 | 42,395 | |||||||||
Cash and cash equivalents | 38,901 | 37,394 | |||||||||
Restricted cash | 49,322 | 46,089 | |||||||||
Rents, deferred rents and other receivables, net | 125,625 | 133,639 | |||||||||
Intangible assets, net | 16,023 | 22,046 | |||||||||
Deferred charges, net | 57,529 | 63,406 | |||||||||
Due from affiliates, net of allowance for loan losses of $0 and $2,653 as of December 31, 2021 and 2020, respectively | 10,062 | 10,847 | |||||||||
Prepaid and other assets, net | 12,377 | 10,538 | |||||||||
Total assets | $ | 2,722,478 | $ | 2,816,456 | |||||||
LIABILITIES AND DEFICIT | |||||||||||
Liabilities: | |||||||||||
Secured debt, net | $ | 2,255,921 | $ | 2,239,640 | |||||||
Accounts payable and other liabilities | 77,612 | 96,041 | |||||||||
Due to affiliates | 1,782 | 1,700 | |||||||||
Intangible liabilities, net | 4,455 | 6,005 | |||||||||
Total liabilities | 2,339,770 | 2,343,386 | |||||||||
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
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, 2021 and 2020 | $ | 465,577 | $ | 447,028 | |||||||
Noncontrolling Interests: | |||||||||||
Series A-1 preferred interest | 452,454 | 435,242 | |||||||||
Senior participating preferred interest | 21,191 | 20,413 | |||||||||
Series B preferred interest | 177,290 | 198,827 | |||||||||
Total mezzanine equity | 1,116,512 | 1,101,510 | |||||||||
Stockholders’ Deficit: | |||||||||||
Common stock, $0.01 par value, 1,000 shares issued and outstanding as of December 31, 2021 and 2020 | — | — | |||||||||
Additional paid-in capital | 203,369 | 202,369 | |||||||||
Accumulated deficit | (865,927) | (726,369) | |||||||||
Noncontrolling interests | (71,246) | (104,440) | |||||||||
Total stockholders’ deficit | (733,804) | (628,440) | |||||||||
Total liabilities and deficit | $ | 2,722,478 | $ | 2,816,456 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenue: | |||||||||||||||||
Lease income | $ | 257,352 | $ | 256,733 | $ | 276,895 | |||||||||||
Parking | 25,426 | 27,775 | 39,715 | ||||||||||||||
Interest and other | 1,020 | 1,040 | 1,235 | ||||||||||||||
Total revenue | 283,798 | 285,548 | 317,845 | ||||||||||||||
Expenses: | |||||||||||||||||
Rental property operating and maintenance | 97,444 | 96,347 | 105,738 | ||||||||||||||
Real estate taxes | 39,702 | 39,292 | 37,657 | ||||||||||||||
Parking | 8,570 | 10,648 | 10,373 | ||||||||||||||
Other expenses | 8,604 | 13,952 | 9,031 | ||||||||||||||
Depreciation and amortization | 104,047 | 104,920 | 105,529 | ||||||||||||||
Interest | 79,739 | 82,808 | 98,875 | ||||||||||||||
Total expenses | 338,106 | 347,967 | 367,203 | ||||||||||||||
Other Income (Expense): | |||||||||||||||||
Gain from derecognition of assets | — | — | 24,777 | ||||||||||||||
Equity in earning (loss) of unconsolidated real estate joint venture | 796 | (525) | (2,080) | ||||||||||||||
Total other income (expense) | 796 | (525) | 22,697 | ||||||||||||||
Net loss | (53,512) | (62,944) | (26,661) | ||||||||||||||
Net loss (income) attributable to noncontrolling interests: | |||||||||||||||||
Series A-1 preferred interest returns | 17,212 | 17,213 | 17,213 | ||||||||||||||
Senior participating preferred interest redemption measurement adjustments | 1,028 | (1,580) | (1,017) | ||||||||||||||
Series B preferred interest returns | 16,063 | 17,708 | 18,049 | ||||||||||||||
Series B common interest – allocation of net income | 33,194 | 111,743 | 35,181 | ||||||||||||||
Net loss attributable to Brookfield DTLA | (121,009) | (208,028) | (96,087) | ||||||||||||||
Series A preferred stock dividends | 18,549 | 18,548 | 18,548 | ||||||||||||||
Net loss attributable to common interest holders of Brookfield DTLA | $ | (139,558) | $ | (226,576) | $ | (114,635) |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net loss | $ | (53,512) | $ | (62,944) | $ | (26,661) | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Interest rate swap contracts designated as cash flow hedges: | |||||||||||||||||
Unrealized derivative holding gains (losses) | — | 562 | (2,117) | ||||||||||||||
Reclassification adjustment for realized loss included in net loss | — | 1,779 | — | ||||||||||||||
Total other comprehensive income (loss) | — | 2,341 | (2,117) | ||||||||||||||
Comprehensive loss | (53,512) | (60,603) | (28,778) | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 67,497 | 145,084 | 69,543 | ||||||||||||||
Comprehensive loss attributable to common interest holders of Brookfield DTLA | $ | (121,009) | $ | (205,687) | $ | (98,321) |
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, 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) | |||||||||||||||||||||||||||||||||||||
Net (loss) income | (121,009) | 67,497 | (53,512) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Contributions | 1,000 | 1,000 | ||||||||||||||||||||||||||||||||||||||||||
Dividends, preferred returns and redemption measurement adjustments on mezzanine equity | (18,549) | (34,303) | (52,852) | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 1,000 | $ | — | $ | 203,369 | $ | (865,927) | $ | — | $ | (71,246) | $ | (733,804) |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net loss | $ | (53,512) | $ | (62,944) | $ | (26,661) | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 104,047 | 104,920 | 105,529 | ||||||||||||||
Gain from derecognition of assets | — | — | (24,777) | ||||||||||||||
Equity in (earning) loss of unconsolidated real estate joint venture | (796) | 525 | 2,080 | ||||||||||||||
(Recovery) write-off of lease receivables previously deemed uncollectible | (1,136) | 8,400 | 165 | ||||||||||||||
Provision for loan losses | — | 2,653 | — | ||||||||||||||
Amortization of acquired below-market leases, net of acquired above-market leases | 206 | 1,331 | (195) | ||||||||||||||
Straight-line rent amortization | (1,413) | 1,441 | (10,083) | ||||||||||||||
Amortization of tenant inducements | 3,803 | 3,897 | 3,852 | ||||||||||||||
Amortization and write-off of debt financing costs | 7,825 | 5,471 | 5,264 | ||||||||||||||
Loss on early extinguishment of debt | 4,575 | — | — | ||||||||||||||
Unrealized (gain) loss on interest rate cap contracts | (41) | 127 | 44 | ||||||||||||||
Realized loss (gain) on interest rate swap contracts | — | 1,779 | — | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Rents, deferred rents and other receivables, net | 6,383 | (4,496) | 299 | ||||||||||||||
Deferred charges, net | (9,446) | (7,053) | (8,497) | ||||||||||||||
Due from affiliates, net | 1,043 | (647) | (2,690) | ||||||||||||||
Prepaid and other assets, net | (1,726) | (1,019) | (570) | ||||||||||||||
Accounts payable and other liabilities | 1,758 | (1,570) | (5,541) | ||||||||||||||
Due to affiliates | 82 | 134 | 1,566 | ||||||||||||||
Net cash provided by operating activities | 61,652 | 52,949 | 39,785 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Expenditures for real estate improvements | (23,836) | (58,062) | (127,775) | ||||||||||||||
Net cash used in investing activities | (23,836) | (58,062) | (127,775) |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from secured debt | $ | 465,000 | $ | 305,000 | $ | 277,610 | |||||||||||
Principal payments on secured debt | (450,000) | (265,000) | (220,000) | ||||||||||||||
Proceeds from Series B preferred interest | 25,500 | 47,850 | 40,700 | ||||||||||||||
Proceeds from senior participating preferred interest | 629 | 777 | 538 | ||||||||||||||
Distributions to Series B preferred interest | (17,794) | (17,865) | (20,574) | ||||||||||||||
Repurchases of Series B preferred interest | (45,306) | (34,218) | (34,521) | ||||||||||||||
Distributions to senior participating preferred interest | (879) | (1,146) | (602) | ||||||||||||||
Contributions to additional paid-in capital | 1,000 | 1,000 | 1,710 | ||||||||||||||
Purchase of interest rate cap contracts | (107) | (130) | (35) | ||||||||||||||
Payment for early extinguishment of debt and termination of interest rate swap contracts | (4,575) | (849) | — | ||||||||||||||
Debt financing costs paid | (6,544) | (5,811) | (3,618) | ||||||||||||||
Net cash (used in) provided by financing activities | (33,076) | 29,608 | 41,208 | ||||||||||||||
Net change in cash, cash equivalents and restricted cash | 4,740 | 24,495 | (46,782) | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 83,483 | 58,988 | 105,770 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 88,223 | $ | 83,483 | $ | 58,988 | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||
Cash paid for interest | $ | 67,976 | $ | 76,873 | $ | 93,020 | |||||||||||
Cash paid for income taxes | $ | 1,723 | $ | 792 | $ | 59 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||||||||
Accrual for current-year additions to real estate investments | $ | 12,818 | $ | 53,760 | $ | 33,812 | |||||||||||
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) | |||||||||||
Writeoff of fully depreciated investments in real estate | $ | 24,233 | $ | 36,613 | $ | 37,373 | |||||||||||
Writeoff of fully amortized intangible assets | $ | 8,634 | $ | 14,414 | $ | 40,077 | |||||||||||
Writeoff of fully amortized intangible liabilities | $ | 13,529 | $ | 6,850 | $ | 5,766 | |||||||||||
Noncash contributions to additional paid-in capital | $ | — | $ | 3,834 | $ | — |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash and cash equivalents at beginning of year | $ | 37,394 | $ | 33,964 | $ | 80,421 | |||||||||||
Restricted cash at beginning of year | 46,089 | 25,024 | 25,349 | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ | 83,483 | $ | 58,988 | $ | 105,770 | |||||||||||
Cash and cash equivalents at end of year | $ | 38,901 | $ | 37,394 | $ | 33,964 | |||||||||||
Restricted cash at end of year | 49,322 | 46,089 | 25,024 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 88,223 | $ | 83,483 | $ | 58,988 |
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, | |||||||||||
2021 | 2020 | ||||||||||
Straight-line and other deferred rents | $ | 108,913 | $ | 109,196 | |||||||
Tenant inducements receivable | 28,445 | 33,280 | |||||||||
Tenant receivables | 3,316 | 5,057 | |||||||||
Other receivables | 362 | 2,079 | |||||||||
Rents, deferred rents and other receivables, gross | 141,036 | 149,612 | |||||||||
Less: accumulated amortization of tenant inducements | 15,411 | 15,973 | |||||||||
Rents, deferred rents and other receivables, net | $ | 125,625 | $ | 133,639 |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Intangible Assets | |||||||||||
In-place leases | $ | 41,422 | $ | 46,448 | |||||||
Tenant relationships | 6,432 | 6,900 | |||||||||
Above-market leases | 16,734 | 19,874 | |||||||||
Intangible assets, gross | 64,588 | 73,222 | |||||||||
Less: accumulated amortization | 48,565 | 51,176 | |||||||||
Intangible assets, net | $ | 16,023 | $ | 22,046 | |||||||
Intangible Liabilities | |||||||||||
Below-market leases | $ | 33,416 | $ | 46,945 | |||||||
Less: accumulated amortization | 28,961 | 40,940 | |||||||||
Intangible liabilities, net | $ | 4,455 | $ | 6,005 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Lease income | $ | (206) | $ | (1,331) | $ | 195 | |||||||||||
Depreciation and amortization expense | $ | 4,267 | $ | 6,217 | $ | 8,792 |
In-Place Leases | Other Intangible Assets | Intangible Liabilities | |||||||||||||||
2022 | $ | 2,757 | $ | 2,261 | $ | 1,492 | |||||||||||
2023 | 1,947 | 1,934 | 794 | ||||||||||||||
2024 | 1,091 | 1,849 | 278 | ||||||||||||||
2025 | 951 | 1,177 | 263 | ||||||||||||||
2026 | 580 | 440 | 245 | ||||||||||||||
Thereafter | 1,033 | 3 | 1,383 | ||||||||||||||
Total future amortization/accretion of intangibles | $ | 8,359 | $ | 7,664 | $ | 4,455 |
Maturity Date (1) | Contractual Interest Rates | Principal Amount as of December 31, | |||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
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 | 275,000 | |||||||||||||||||||
EY Plaza (7) | 10/9/2025 | LIBOR + 6.85% | 30,000 | 30,000 | |||||||||||||||||||
Gas Company Tower (7) | 2/9/2026 | LIBOR + 1.89% | 350,000 | — | |||||||||||||||||||
Gas Company Tower (7) | 2/9/2026 | LIBOR + 5.00% | 65,000 | — | |||||||||||||||||||
Gas Company Tower (7) | 2/9/2026 | LIBOR + 7.75% | 50,000 | — | |||||||||||||||||||
Total variable-rate loans | 1,805,796 | 1,340,796 | |||||||||||||||||||||
Fixed-Rate Debt: | |||||||||||||||||||||||
BOA Plaza | 9/1/2024 | 4.05% | 400,000 | 400,000 | |||||||||||||||||||
FIGat7th | 3/1/2023 | 3.88% | 58,500 | 58,500 | |||||||||||||||||||
Total fixed-rate debt | 458,500 | 458,500 | |||||||||||||||||||||
Debt Refinanced: | |||||||||||||||||||||||
Gas Company Tower | — | 319,000 | |||||||||||||||||||||
Gas Company Tower | — | 131,000 | |||||||||||||||||||||
Total debt refinanced | — | 450,000 | |||||||||||||||||||||
Total secured debt | 2,264,296 | 2,249,296 | |||||||||||||||||||||
Less: unamortized debt financing costs | 8,375 | 9,656 | |||||||||||||||||||||
Total secured debt, net | $ | 2,255,921 | $ | 2,239,640 |
2023 | 819,296 | ||||
2024 | 675,000 | ||||
2025 | 305,000 | ||||
2026 | 465,000 | ||||
Total secured debt | $ | 2,264,296 |
As of December 31, | |||||||||||
2021 | 2020 | ||||||||||
Tenant improvements and inducements payable | $ | 32,973 | $ | 47,679 | |||||||
Unearned rent and tenant payables | 31,249 | 27,331 | |||||||||
Accrued capital expenditures and leasing commissions | 7,422 | 15,201 | |||||||||
Accrued expenses and other liabilities | 5,968 | 5,830 | |||||||||
Accounts payable and other liabilities | $ | 77,612 | $ | 96,041 |
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, 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 | ||||||||||||||||||||||||||||||||
Issuance of Series B preferred interest | 25,500 | 25,500 | ||||||||||||||||||||||||||||||||||||
Dividends | 18,549 | 18,549 | ||||||||||||||||||||||||||||||||||||
Preferred returns | 17,212 | 16,063 | 33,275 | |||||||||||||||||||||||||||||||||||
Redemption measurement adjustments | 1,028 | 1,028 | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | 629 | 629 | ||||||||||||||||||||||||||||||||||||
Repurchases of noncontrolling interests | (45,306) | (45,306) | ||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (879) | (17,794) | (18,673) | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 9,730,370 | $ | 465,577 | $ | 452,454 | $ | 21,191 | $ | 177,290 | $ | 1,116,512 |
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, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Balance at beginning of year | $ | — | $ | (2,341) | $ | (224) | |||||||||||
Net unrealized gains (losses) arising during the year | — | 562 | (2,117) | ||||||||||||||
Reclassification of losses related to terminated interest rate swaps to other expenses included in net income | — | 1,779 | — | ||||||||||||||
Net changes | — | 2,341 | (2,117) | ||||||||||||||
Balance at end of year | $ | — | $ | — | $ | (2,341) |
Notional Amount | Strike Rate (1) | Expiration Date | ||||||||||||||||||
Interest Rate Caps: | ||||||||||||||||||||
Wells Fargo Center–North Tower | $ | 400,000 | 2.57 | % | 10/15/2022 | |||||||||||||||
Wells Fargo Center–North Tower | 65,000 | 2.57 | % | 10/15/2022 | ||||||||||||||||
Wells Fargo Center–North Tower | 35,000 | 2.57 | % | 10/15/2022 | ||||||||||||||||
Wells Fargo Center–South Tower | 290,000 | 3.63 | % | 11/4/2022 | ||||||||||||||||
777 Tower | 268,600 | 4.00 | % | 11/10/2022 | ||||||||||||||||
777 Tower | 50,000 | 4.00 | % | 11/10/2022 | ||||||||||||||||
EY Plaza | 275,000 | 4.00 | % | 10/15/2022 | ||||||||||||||||
EY Plaza | 30,000 | 4.00 | % | 10/15/2022 | ||||||||||||||||
Gas Company Tower | $ | 350,000 | 4.00 | % | 2/15/2023 | |||||||||||||||
Gas Company Tower | $ | 65,000 | 4.00 | % | 2/15/2023 | |||||||||||||||
Gas Company Tower | $ | 50,000 | 4.00 | % | 2/15/2023 | |||||||||||||||
Total derivatives not designated as cash flow hedging instruments | $ | 1,878,600 |
Fair Value as of December 31, | ||||||||||||||||||||
Balance Sheet Location | 2021 | 2020 | ||||||||||||||||||
Derivatives not designated as hedging instruments: Interest rate caps | Prepaid and other assets, net | $ | 46 | $ | 5 | |||||||||||||||
Gain (Loss) Recognized in OCL | Loss Reclassified from AOCL to Consolidated Statements of Operations | |||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||
For the years ended: | ||||||||||||||
December 31, 2021 | $ | — | $ | — | ||||||||||
December 31, 2020 | $ | 562 | $ | (1,779) | (1) | |||||||||
December 31, 2019 | $ | (2,117) | $ | — |
• | 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. |
As of December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Fair Value | $ | 2,263,160 | $ | 2,246,225 | ||||||||||
Carrying value | $ | 2,255,921 | $ | 2,239,640 |
Fee Type | Affiliate | Fee Description | ||||||
Property management | The Manager | 2.75% of rents collected (as defined in the management agreements) | ||||||
Asset management | BPY and BAM | 0.75% of DTLA Holdings’ invested equity in Brookfield DTLA’s properties | ||||||
Leasing | The Manager and Brookfield affiliates | 1.00% to 4.00% of expected rents, depending on the terms of the lease and whether a third-party broker was paid a commission for the transaction | ||||||
Construction management | The Manager | 3.00% of hard and soft construction costs | ||||||
Development management | Other | 3.00% of hard and soft construction costs | ||||||
Entitlement | Other | 20.00% of the entitlement costs incurred by BOA Plaza, if the entitlement budget is less than $3,000,000 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Property management | $ | 8,037 | $ | 8,035 | $ | 8,479 | |||||||||||
Asset management | $ | 6,166 | $ | 6,040 | $ | 6,161 | |||||||||||
Leasing | $ | 1,607 | $ | 2,105 | $ | 1,788 | |||||||||||
Construction management | $ | 400 | $ | 3,239 | $ | 3,263 | |||||||||||
Development management (1) | $ | 1,881 | $ | 1,007 | $ | 991 | |||||||||||
Entitlement | $ | 639 | $ | — | $ | — | |||||||||||
General, administrative and reimbursable expenses | $ | 2,807 | $ | 2,492 | $ | 2,865 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Insurance expense (1) | $ | 12,473 | $ | 11,836 | $ | 9,286 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Lease income (1) | $ | 13,343 | $ | 11,443 | $ | 5,916 | |||||||||||
Parking revenue (1) | $ | 1,001 | $ | 1,317 | $ | — | |||||||||||
Interest and other revenue | $ | — | $ | 51 | $ | 208 | |||||||||||
Rental property operating and maintenance expense (2) | $ | 318 | $ | 577 | $ | 676 | |||||||||||
Other expenses | $ | — | $ | 90 | $ | 142 | |||||||||||
Interest expense (3)(4) | $ | 2,201 | $ | 1,982 | $ | 613 |
2022 | $ | 155,255 | |||
2023 | 145,954 | ||||
2024 | 131,602 | ||||
2025 | 119,022 | ||||
2026 | 107,154 | ||||
Thereafter | 511,642 | ||||
Total future minimum base rents | $ | 1,170,629 |
Quarter | |||||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||||
2021 | |||||||||||||||||||||||
Total revenue | $ | 69,692 | $ | 69,210 | $ | 68,820 | $ | 76,076 | |||||||||||||||
Total expenses | 87,625 | 82,925 | 83,486 | 84,070 | |||||||||||||||||||
Total other income | 199 | 97 | 268 | 232 | |||||||||||||||||||
Net loss | (17,734) | (13,618) | (14,398) | (7,762) | |||||||||||||||||||
Net loss (income) attributable to noncontrolling interests: | |||||||||||||||||||||||
Series A-1 preferred interest returns | 4,303 | 4,302 | 4,303 | 4,304 | |||||||||||||||||||
Senior participating preferred interest redemption measurement adjustments | 601 | 299 | (325) | 453 | |||||||||||||||||||
Series B preferred interest returns | 4,282 | 4,146 | 3,896 | 3,739 | |||||||||||||||||||
Series B common interest – allocation of net income (loss) | 15,204 | (6,669) | 27,222 | (2,563) | |||||||||||||||||||
Net loss attributable to Brookfield DTLA | (42,124) | (15,696) | (49,494) | (13,695) | |||||||||||||||||||
Series A preferred stock dividends | 4,637 | 4,638 | 4,637 | 4,637 | |||||||||||||||||||
Net loss attributable to common interest holders of Brookfield DTLA | $ | (46,761) | $ | (20,334) | $ | (54,131) | $ | (18,332) |
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) |
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 | $ | 449,170 | $ | 159,563 | $ | 41,024 | $ | 608,733 | $ | 649,757 | $ | 118,479 | 2013 A | |||||||||||||||||||||||||||||||||||||||
BOA Plaza 333 S. Hope Street | 400,000 | 54,163 | 344,310 | 83,679 | 54,163 | 427,989 | 482,152 | 126,413 | 2006 A | |||||||||||||||||||||||||||||||||||||||||||||||
Wells Fargo Center– South Tower 355 S. Grand Avenue | 260,796 | 21,231 | 389,138 | 83,404 | 21,231 | 472,542 | 493,773 | 72,529 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||||
Gas Company Tower 525-555 W. Fifth Street | 465,000 | 20,742 | 392,650 | 77,204 | 20,742 | 469,854 | 490,596 | 88,320 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||||
EY Plaza 725 S. Figueroa Street | 305,000 | 47,385 | 242,504 | 94,052 | 47,385 | 336,556 | 383,941 | 92,427 | 2006 A | |||||||||||||||||||||||||||||||||||||||||||||||
777 Tower 777 S. Figueroa Street | 275,000 | 38,010 | 293,958 | 43,053 | 38,010 | 337,011 | 375,021 | 59,069 | 2013 A | |||||||||||||||||||||||||||||||||||||||||||||||
FIGat7th 735 S. Figueroa Street | 58,500 | — | 44,743 | 29,868 | — | 74,611 | 74,611 | 23,166 | 2013 C | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 2,264,296 | $ | 222,555 | $ | 2,156,473 | $ | 570,823 | $ | 222,555 | $ | 2,727,296 | $ | 2,949,851 | $ | 580,403 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Investments in Real Estate | |||||||||||||||||
Balance at beginning of year | $ | 2,967,431 | $ | 2,925,575 | $ | 2,834,450 | |||||||||||
Additions during the year: | |||||||||||||||||
Improvements | 6,653 | 78,469 | 148,637 | ||||||||||||||
Deductions during the year: | |||||||||||||||||
Dispositions | — | — | 20,139 | ||||||||||||||
Writeoff of fully depreciated investments in real estate | 24,233 | 36,613 | 37,373 | ||||||||||||||
Balance at end of year | $ | 2,949,851 | $ | 2,967,431 | $ | 2,925,575 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Accumulated Depreciation | |||||||||||||||||
Balance at beginning of year | $ | 517,329 | $ | 466,405 | $ | 418,205 | |||||||||||
Additions during the year: | |||||||||||||||||
Depreciation expense | 87,307 | 87,537 | 85,573 | ||||||||||||||
Deductions during the year: | |||||||||||||||||
Writeoff of fully depreciated investments in real estate | 24,233 | 36,613 | 37,373 | ||||||||||||||
Balance at end of year | $ | 580,403 | $ | 517,329 | $ | 466,405 |
Item 9. | Changes in and Disagreements With Accountants on Accounting | |||||||||||||
and Financial Disclosure. |
Name | Age | Position | Executive Officer Since | |||||||||||||||||
G. Mark Brown | 57 | 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 | 51 | 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 | 57 | 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 | 51 | Director (also Senior Vice President, Secretary of Brookfield DTLA and Senior Vice President in Brookfield Asset Management’s real estate group) | 2014 | |||||||||||||||||
Andrew Dakos | 56 | Director | 2017 | |||||||||||||||||
Murray Goldfarb | 47 | Director (also a Managing Partner in Brookfield Asset Management’s real estate group) | 2018 | |||||||||||||||||
Phillip Goldstein | 77 | Director | 2017 | |||||||||||||||||
Ian Parker | 57 | Director | 2017 | |||||||||||||||||
Robert L. Stelzl | 76 | 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) | $ | 70,000 | $ | — | $ | — | $ | — | $ | — | $ | 70,000 | ||||||||||||||||||||||||||
Phillip Goldstein (1) | $ | 60,000 | $ | — | $ | — | $ | — | $ | — | $ | 60,000 | ||||||||||||||||||||||||||
Robert L. Stelzl (1) | $ | 70,000 | $ | — | $ | — | $ | — | $ | — | $ | 70,000 | ||||||||||||||||||||||||||
Ian Parker (1) | $ | 60,000 | $ | — | $ | — | $ | — | $ | — | $ | 60,000 |
Item 12. | Security Ownership of Certain Beneficial Owners and Management | |||||||||||||
and Related Stockholder Matters. |
Fee Type | Affiliate | Fee Description | ||||||
Property management | The Manager | 2.75% of rents collected (as defined in the management agreements) | ||||||
Asset management | BPY and BAM | 0.75% of DTLA Holdings’ invested equity in Brookfield DTLA’s properties | ||||||
Leasing | The Manager and Brookfield affiliates | 1.00% to 4.00% of expected rents, depending on the terms of the lease and whether a third-party broker was paid a commission for the transaction | ||||||
Construction management | The Manager | 3.00% of hard and soft construction costs | ||||||
Development management | Other | 3.00% of hard and soft construction costs | ||||||
Entitlement | Other | 20.00% of the entitlement costs incurred by BOA Plaza, if the entitlement budget is less than $3,000,000 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Property management | $ | 8,037 | $ | 8,035 | $ | 8,479 | |||||||||||
Asset management | $ | 6,166 | $ | 6,040 | $ | 6,161 | |||||||||||
Leasing | $ | 1,607 | $ | 2,105 | $ | 1,788 | |||||||||||
Construction management | $ | 400 | $ | 3,239 | $ | 3,263 | |||||||||||
Development management (1) | $ | 1,881 | $ | 1,007 | $ | 991 | |||||||||||
Entitlement | $ | 639 | $ | — | $ | — | |||||||||||
General, administrative and reimbursable expenses | $ | 2,807 | $ | 2,492 | $ | 2,865 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Insurance expense (1) | $ | 12,473 | $ | 11,836 | $ | 9,286 |
For the Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Lease income (1) | $ | 13,343 | $ | 11,443 | $ | 5,916 | |||||||||||
Parking revenue (1) | $ | 1,001 | $ | 1,317 | $ | — | |||||||||||
Interest and other revenue | $ | — | $ | 51 | $ | 208 | |||||||||||
Rental property operating and maintenance expense (2) | $ | 318 | $ | 577 | $ | 676 | |||||||||||
Other expenses | $ | — | $ | 90 | $ | 142 | |||||||||||
Interest expense (3)(4) | $ | 2,201 | $ | 1,982 | $ | 613 |
Fees (1) | For the Year Ended December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
Audit fees (2) | $ | 799,000 | $ | 771,000 | ||||||||||
Audit-related fees | — | — | ||||||||||||
Tax fees | — | — | ||||||||||||
All other fees | — | — | ||||||||||||
$ | 799,000 | $ | 771,000 |
(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, 2021, 2020 and 2019 | |||||||||||||||||||
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 | 10-K | 001-36135 | 10.3 | March 25, 2021 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
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, 2021 | ||||||||||||||||||||||||||||||||
Certification of Principal Executive Officer dated March 24, 2022 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||||||||||||||||||||
Certification of Principal Financial Officer dated March 24, 2022 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||||||||||||||||||||
Certification of Principal Executive Officer and Principal Financial Officer dated March 24, 2022 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 24, 2022 |
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 24, 2022 | By: | /s/ G. MARK BROWN | ||||||||
G. Mark Brown Chairman of the Board (Principal executive officer) | |||||||||||
March 24, 2022 | By: | /s/ BRYAN D. SMITH | |||||||||
Bryan D. Smith Chief Financial Officer (Principal financial and accounting officer) | |||||||||||
March 24, 2022 | By: | /s/ MICHELLE L. CAMPBELL | |||||||||
Michelle L. Campbell Senior Vice President, Secretary and Director | |||||||||||
March 24, 2022 | By: | /s/ ANDREW DAKOS | |||||||||
Andrew Dakos Director | |||||||||||
March 24, 2022 | By: | /s/ MURRAY GOLDFARB | |||||||||
Murray Goldfarb Director | |||||||||||
March 24, 2022 | By: | /s/ PHILLIP GOLDSTEIN | |||||||||
Phillip Goldstein Director | |||||||||||
March 24, 2022 | By: | /s/ IAN PARKER | |||||||||
Ian Parker Director | |||||||||||
March 24, 2022 | By: | /s/ ROBERT L. STELZL | |||||||||
Robert L. Stelzl Director |
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 24, 2022 | By: | /s/ G. MARK BROWN | ||||||
G. Mark Brown | ||||||||
Chairman of the Board | ||||||||
(Principal executive officer) |
Date: March 24, 2022 | By: | /s/ BRYAN D. SMITH | ||||||
Bryan D. Smith | ||||||||
Chief Financial Officer | ||||||||
(Principal financial officer) |
Date: March 24, 2022 | 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) |