L.A. Office Building Tied to Boxer Oscar De La Hoya Sent to Special Servicing

The borrower of a loan tied to a Downtown Los Angeles office building has been knocked down, but still has the 10-count to get back on its feet. 

Golden Boy Promotions, the boxing and mixed martial arts promotions company founded by boxing legend Oscar De La Hoya, has missed the July maturity on the $21.7 million debt tied to 626 Wilshire Boulevard, a 12-story property in Downtown L.A.’s Financial District. Golden Boy, along with the Oscar De La Hoya Foundation, has operated its headquarters out of the building since the company purchased it in 2004 for about $15 million.

De La Hoya’s Golden Boy in 2015 secured a $27 million commercial mortgage-backed securities loan, originated by Morgan Stanley, Bank of America and BofA subsidiary Merrill Lynch, toward the building, property records show. Although the building had performed well throughout the loan term — and net cash flow last year was above cash flow at loan issuance, per a Morningstar report — the debt was still recently transferred to special servicing after skipping past its maturity date. 

The building’s second-largest tenant vacated the property last year, per Morningstar, which could help explain the distress, though the name of the tenant and the building’s current occupancy rate were not immediately available. The building ownership is currently seeking an extension on the loan, per Morningstar. 

A spokesperson for Morgan Stanley declined to comment, and representatives for Golden Boy and for BofA did not immediately respond to requests for comment. 

Despite obstinate office vacancy rates and constant tales of office financial distress in the years since the pandemic, there are signs that Downtown L.A. is finding its second wind. Solid investment activity and recent public safety improvements — not to mention remarkably high residential occupancy levels — indicate that Downtown L.A. has more fight left in it than the red corner would care to admit. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.