Redcar Properties handed back the keys to creative offices located in Santa Monica to its lender, Bank OZK, according to a deed in lieu of foreclosure dated late March. The unpaid debt balance was $50.1 million.
The debt was on Redcar’s 1650 Euclid Street, but because 1620 and 1630 Euclid were lot tied to 1650 Euclid, the lender now owns them all, according to an informed source. Bank OZK issued the $65 million loan, which was a construction note connected to each parcel, to Redcar in 2022, records revealed.
In recent Securities and Exchange Commission filings, Bank OZK mentioned the nonperforming loan after a $5.7 million charge off that left $50.1 million owed. The loan matured in January, a separate financial filing noted, stating that the borrower “indicated unwillingness to continue financial support for the project and the loan is now past due.”
“We are pursuing opportunities to market this asset. If those efforts are unsuccessful, we will move to acquire title to the property,” Bank OZK said in the filing for the period that ended Dec. 31. Now that Bank OZK has become the owner, it’ll probably still shop the real estate.
Neither Bank OZK nor Redcar Chair and CEO Jim Jacobsen, who founded Industry Partners, immediately responded to a request for comment.
The recently developed 1650 Euclid is a three-story, 65,000-square foot creative office building; 1620 and 1630 Euclid are creative offices, too — totaling 11,000 square feet and 10,000 square feet, respectively, according to brochures. Creative offices aren’t your typical downtown Los Angeles office towers but vacancies are still skyhigh. The Santa Monica office sector has a 26 percent vacancy rate, which isn’t a far cry from downtown’s 32 percent, according to Colliers’ latest data.
Redcar’s Euclid properties are near 1221 Olympic Boulevard, which Teddy Schwarzman’s Black Bear recently purchased from J.J. Abrams’ Bad Robot. That deal came out to about $1,200 per square foot, which was pricey, but it is a famous piece of real estate.
Read more
Teddy Schwarzman’s Black Bear revealed as buyer of JJ Abrams’ building
Texas buyer pays Redcar $36M for year-old Chinatown timber office
