Borrowing Costs Sink Downtown Los Angeles Apartment Tower
Owners of the 785-unit Beaudry in downtown Los Angeles face a debt shift that could change how the building is financed and leased.
Updated on Nov. 3, 2026 in Commercial
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Brookfield declined to refinance roughly $360 million in debt on the 785-unit Beaudry apartment tower in downtown Los Angeles, and the lender, Bridge Investment Group, is working to sell the loan. For Los Angeles renters and investors, the case signals how higher borrowing costs are reshaping the city's multifamily market.
Why it matters
Surging debt costs and a sluggish recovery contributed to Brookfield's decision, and refinancing economics in a higher-rate environment drove it. Borrowing costs have effectively wiped out Brookfield's equity in the property, which shows how quickly financing math can overtake a building's value in Los Angeles.
The 785-unit Beaudry tower at 960 West Seventh Street opened in April 2023 after a $600 million development cost, and it carries roughly $360 million in debt Brookfield chose not to refinance. The building is about 95 percent occupied with average asking rents of $4,200 a month, and Brookfield has offered weeks of free rent.
The players
Brookfield
A global asset manager whose real estate holdings include the Beaudry tower in downtown Los Angeles.
Bridge Investment Group
An investment firm owned by Apollo that holds the Beaudry loan and is working to sell it.
The details
Brookfield's refinancing decision reflects how the numbers stopped working: at current borrowing costs, the debt on the Beaudry consumes the value Brookfield had invested. Bridge Investment Group, the lender, is now working to sell the loan rather than extend it. Meanwhile, downtown Los Angeles office vacancy is roughly double its pre-pandemic level, even as apartment rents there have recovered to 2019 levels.
Timeline
The Beaudry tower opened to residents in April 2023.
Multifamily CMBS delinquency was about 1 percent in October 2023 before climbing to 7.1 percent this year.
Nearly half of apartment debt maturities come due between 2026 and 2028.
Brookfield's exit from the Beaudry was reported on November 3, 2026.
The Home Front
Multifamily delinquency in commercial mortgage-backed securities has climbed from 1 percent in October 2023 to 7.1 percent this year, and nearly half of apartment debt matures between 2026 and 2028. The Beaudry's debt trouble places a single downtown Los Angeles tower inside that broader pressure on rental housing financing.
If you rent in a newer downtown Los Angeles building, watch for lease-renewal offers that feature free weeks of rent, since owners facing debt pressure may use concessions to keep units filled. If you are weighing a purchase or lease in a building with heavy near-term debt, ask your licensed agent or attorney to review ownership and financing terms before committing.
The takeaway
The Beaudry shows that a building can be fully leased and still face financing trouble when borrowing costs rise. For households, the practical takeaway is to read rent concessions and ownership changes as signals worth understanding before you sign or renew.
What happens next
Nearly half of apartment debt maturities come due between 2026 and 2028, so further refinancing decisions on similar buildings are likely during that window.
Further reading
For the wider picture of how commercial property deals are shifting, explore more Commercial real estate coverage on We are Home.
Source note: This article includes information reported by The Real Deal New York.
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