A historic apartment building in Downtown Los Angeles that is home to a number of Korean residents has been placed on the market after its owners fell behind on loan payments, raising concerns about the property’s future.
According to a report by the Los Angeles Times, the owners of the Metropolitan Apartments(Google Capture), located at the corner of Broadway and Fifth Street, recently stopped making payments on a $32 million loan obtained in 2017. The lender filed a foreclosure action in Los Angeles County Superior Court earlier this month.
Completed in 1913, the 10-story Metropolitan building is one of Downtown LA’s best-known historic landmarks. The property was designed with the involvement of renowned architect John Parkinson, whose work also includes Los Angeles City Hall, Union Station, and the Los Angeles Memorial Coliseum. Built in the Beaux-Arts style, the building is designated as a Los Angeles Historic-Cultural Monument.
The property was once considered one of Downtown’s premier commercial buildings. Around 2011, the Fallas family converted former office space into residential apartments. A Fallas Paredes discount clothing store previously occupied part of the building, but the retailer closed after its parent company filed for Chapter 11 bankruptcy protection in 2018.
Despite the financial troubles facing the ownership group, the residential portion of the building remains relatively strong. The Metropolitan’s 88 apartments are currently about 91% occupied. Residents have access to amenities including a rooftop swimming pool, fitness center, and barbecue area.
The building is also known to house several Korean seniors, including some who are waiting for placement in senior housing communities or Section 8 affordable housing programs.
However, the retail spaces on the ground floor have struggled. Many storefronts along Broadway and Fifth Street remain vacant, reflecting the ongoing challenges facing Downtown Los Angeles’ commercial district.
Real estate professionals say the area’s slow recovery from the pandemic continues to weigh on property values and leasing activity. Downtown broker Hal Bastian told the Los Angeles Times that a lack of pedestrian traffic has hurt businesses throughout the area and made it difficult to attract retail tenants.
Industry observers note that rising office vacancies, declining visitor activity, and a prolonged retail slowdown have placed financial pressure on many historic buildings across Downtown Los Angeles.
The property’s asking price has not been disclosed. The sale is being handled by real estate investment firm Zacuto Group, which is marketing the building to potential investors.
For residents, the foreclosure process does not necessarily mean immediate displacement. However, the sale or transfer of ownership could create uncertainty about the long-term future of one of Downtown LA’s most recognizable historic residential properties.
