Revitalization Falters in Downtown L.A.

The revitalization of downtown Los Angeles took another hit this week, as real estate firm Meruleo Maddox Properties Inc., the largest private landowner in the area, revealed that it may have to file for bankruptcy protection.
March 16, 2009, 9am PDT | Tim Halbur
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Real-estate firm Meruelo Maddux Properties Inc. said Thursday that it was working to reach agreements with four lenders after the developer stopped making interest payments on 26 loans valued at $266 million. Three of those loans are due, and the company hasn't been able to extend them.

"The debt capital markets have totally shut down," Andrew Murray, the company's chief financial officer, said in an interview.

It is the latest shoe to drop for Los Angeles's downtown district, which has been the focus of a decade-long renewal project designed to convert old warehouses and office buildings into lofts, high-rise residential towers and an entertainment and retail district."

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Published on Friday, March 13, 2009 in The Wall St. Journal
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