Blackstone Is in Talks With Lenders After LA Office Write-Down

Blackstone Inc. is in conversations with lenders about the future of a Los Angeles office complex once valued at $583 million, after having written down its entire stake in the property, according to a person with knowledge of the matter.

The private equity giant acquired Playa District in 2016 as part of a portfolio purchase from a real estate investment trust sponsored by Hines. The property, once known as Howard Hughes Center, backs $482 million of loans, according to Real Estate Alert, which reported that the buildings are 70% leased.