Broadbridge LA files Chapter 11 to avoid foreclosure by Starwood

By Sarah Lizee

Olympia, Wash., Aug. 9 – Broadbridge LA LLC filed Chapter 11 bankruptcy Tuesday in the U.S. Bankruptcy Court for the Eastern District of New York.

The company owns an incomplete commercial real estate development project in downtown Los Angeles.

Broadbridge said the ramifications of the pandemic have taken a toll on the intended development.

The underlying mortgage matured in June 2020, and thereafter, Starwood Capital Group LLP executed a series of standstill agreements that expired in November 2021.

Starwood, acting through its servicer, Museum Building Holdings LLC, later started a foreclosure action and scheduled a foreclosure sale for Aug. 9.

Broadbridge said it made the Chapter 11 filing on an emergency basis to prevent the foreclosure and “gain one last opportunity” to market the project.

The company said it intends to proceed with a new marketing approach to reignite interest.

Broadbridge said that, if stabilized and properly marketed, the property is projected to be worth more than the senior debt held by affiliates of Starwood in the original total principal amount of $213.7 million, plus interest and fees.

In its petition, the company reported $100 million to $500 million in both assets and liabilities.

Great Neck, N.Y.-based Broadbridge LA filed bankruptcy under Chapter 11 case number 22-72048.

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