Waterbridge’s Joel Schreiber Scores Extension on L.A. Office Tower Loan
By Nick Trombola April 11, 2024 2:58 pm
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Hankey Group Chairman Don Hankey is in a giving mood lately.
About a week removed from providing the money for former President Donald Trump’s $175 million appeal bond, Hankey has provided Waterbridge Capital founder and CEO Joel Schreiber a loan extension for debt set to come due later this month, according to The Real Deal, citing confidential sources.
Schreiber secured the extension by paying off roughly 40 percent of the $75 million he owed for the purchase of Union Bank Plaza, a 40-story office tower in Downtown Los Angeles that Schreiber acquired early last year for $110 million. Schreiber now owes Hankey Capital $40 million, per TRD.
Schreiber bought the building at 445 Figueroa Street just days before L.A.’s new transfer tax, also known as the “mansion tax,” went into effect. Under the law, properties sold for more than $10 million must pay a tax of 5.5 percent to the city.
It’s unclear how Schreiber came up with the capital to pay off such a large portion of the debt. Hankey Capital’s financing was intended to act as a bridge loan at the time the deal closed, rather than permanent financing, per TRD.
A representative for Hankey Capital declined to comment. Neither Schreiber nor other Waterbridge officials immediately responded to requests for comment.
Despite narrowly avoiding default with his Union Bank Plaza loans, Schreiber still faces financial trouble on the other side of the country. Schreiber, who is often cited as one of the first investors in spiraling coworking giant WeWork, is facing roughly $100 million in court judgements in New York, after state judges last year found that he owes millions to Goldman Sachs and an affiliate of Starwood Capital Group for violating loan agreements.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
