The Fallas family’s Metropolitan building in Downtown Los Angeles’ Historic Core moved a step closer to receivership and foreclosure. A special servicer for the lender and commercial mortgage-backed securities holders requested a receiver this month, initiating a judicial foreclosure. Special servicer LNR alleges the borrower, the Fallas family, defaulted on their loan on the Beaux-Arts style building and owes about $32 million. Natixis originated the debt. The ownership “is financially incapable of curing defaults” the complaint reads. LNR and the Fallas family are still in talks, which could result in a short sale, a person familiar with the matter said. […]
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