UPDATED, Nov. 11, 2022, 3:51 p.m.: KBS can’t guarantee that it will be able to sell its Union Bank Plaza to Waterbridge Capital, a firm run by embattled investor Joel Schreiber.
“There can be no assurance that the company will complete the sale of Union Bank Plaza,” the Newport Beach-based REIT said in a financial filing this week.
KBS has tried to sell the building since at least 2017, only to experience a series of failed attempts. First, RC Acquisitions backed out of a $280 million purchase; then in June, Harbor Associates backed out of a $165 million deal to buy the property.
A month later, Schreiber’s entity signed an agreement to buy the 40-story office tower at 445 South Figueroa Street in Downtown L.A. for $155 million, after winning a bidding war against four other buyers.
The deal was all-cash, leading KBS to initially think the deal would close, according to a source familiar with the matter.
Since then Waterbridge has asked KBS to extend the closing date three times, but did not state the reason for the requested extensions.
A KBS spokesperson reaffirmed the company was still in contract to sell the property. A representative for Schreiber did not respond to a request for comment.
Schreiber’s firm now has until Nov. 30 to close on the deal, KBS said in its filing. If Waterbridge does not close, it may forfeit a deposit of up to $10.5 million.
Schreiber, who is known for being the first investor in WeWork, is currently navigating a Chapter 11 bankruptcy on another Downtown L.A. property: the Broadway Trade Center.
On Thursday, Schreiber lost his own deal to sell that historic, yet unoccupied and unrenovated, building at 801 South Broadway, after the proposed buyer, Quinton Primo of Capri Capital Partners, did not put down a deposit on the property.
This story has been updated to include context from a KBS spokesperson.
The post KBS sees “no assurance” Joel Schreiber will close Union Bank Plaza purchase appeared first on The Real Deal Los Angeles.
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