Brookfield Properties Takes Control of 333 Bush

SAN FRANCISCO-Publicly held Brookfield Properties of Toronto has assumed responsibility for the operation of 333 Bush St., a 543,000-square-foot, 34-story downtown office building that went into default earlier this year after the anchor tenant defaulted on its lease and filed for bankruptcy. The lenders–Hypo Bank and a real estate finance fund managed by Brookfield Properties’ sister company Brookfield Asset Management–officially took possession of the asset two weeks ago after nobody opted to bid more than the debt on the property at a Dec. 3 trustee sale at San Francisco City Hall. The sale capped a non-judicial foreclosure process.

In July , the building’s former owner Hines told GlobeSt.com that it and JV partner Sterling American Property would be exercising its right to deed the class A property back to lenders in lieu of foreclosure. At that time, it was expected that Brookfield would assume operational control given its stake in the asset and its ownership of approximately 75 million square feet of CBD office properties including World Financial Center in Manhattan, Brookfield Place in Toronto, and Bank of America Plaza in Los Angeles.

The acquisition is Brookfield’s first in the San Francisco market; a stated goal of the company is to build a portfolio of assets in San Francisco. Bert Dezzutti, Brookfield’s SVP in charge of California was not immediately available Wednesday for comment. Angus Scott and Jim Ousman with the CAC Group have the leasing assignment.