Los Angeles office landlord MPG Office Trust Inc. said Friday it had consented to put its downtown skyscraper Two California Plaza into receivership.
The move was the first step in MPG’s plan to quit ownership of the 52-story tower at 350 S. Grand Ave., which is encumbered with $470 million of mortgage debt.
“Two California Plaza is an asset that is significantly over-leveraged,” Chief Executive David L. Weinstein said. “While we are disappointed that the company was unable to retain this asset, we were unable to restructure the loan on terms that were in the best interests of our stockholders.”
MPG determined that it was more prudent to use its cash to support its remaining downtown office portfolio, he said. Among its holdings is U.S. Bank Tower, the tallest building in the West, and One California Plaza.
The company is laboring with debt it took on in a property acquisition spree during the real estate boom of the mid-2000s.