The Metropolitan, a Beaux‑Arts landmark at Broadway and 5th in Downtown Los Angeles, has quietly landed on the sales block as its owners stare down a possible foreclosure. Built in 1913 and later converted into residential lofts, the property still has dozens of renters living upstairs, even while its street‑level shops remain dark. The standoff is fast becoming a flashpoint in the ongoing fight over downtown’s sputtering retail recovery and how to treat aging, landmarked buildings that are rich in history but light on cash flow.
As first reported by The Real Deal, a special servicer representing the lender has asked the court to appoint a receiver and launch a judicial foreclosure, alleging the Fallas family stopped paying on a roughly $32 million loan that originated in 2017. The filing seeks to strip ownership rights from the family and hand control to a receiver who would be empowered to market and sell the building.
Building, tenants and listing details
Marketing materials circulated by the Zacuto Group and Northmarq list 88 apartments at the Metropolitan and show the multifamily portion as about 91% leased, touting a rooftop pool, fitness center and communal roof deck while advertising all of the ground‑floor retail as vacant, according to the Zacuto Group offering. The Metropolitan is also a city‑designated Historic‑Cultural Monument, according to a Los Angeles Department of City Planning report, a label that could influence both preservation requirements and potential tax credits for whoever takes it over next.
Broadway feels the strain
Brokers and residents say those dark storefronts are draining life from Broadway during the day. “The lack of bodies on the street is generally hurting downtown,” broker Hal Bastian told the Los Angeles Times, which noted that a wave of historic conversions around Broadway and 5th has created hundreds of apartments but has not brought ground‑floor retail back to life.
What comes next
Special servicers like LNR often run a “dual track” approach, pressing for receivership or foreclosure while still talking with owners, a process that can lead to a short sale, an out‑of‑court workout or a sale overseen by the court, according to The Real Deal. Brokers say the Fallas family has already been quietly marketing the Metropolitan, and the offering materials do not include an asking price, leaving would‑be buyers to pencil out value against the outstanding debt and whatever it might cost to refresh the aging property. Detailed listing information is available from the Zacuto Group.
For current residents, the immediate fallout appears limited for now. Listings indicate the units remain leased, and there have been no announcements of mass tenant relocations. Still, how this plays out, whether a new owner chooses to carefully preserve the Metropolitan’s historic bones or opts for a faster value play, will be watched closely as part of a broader wave of distress in DTLA. That wave has already produced other high‑profile property fights, including the Wedbush Center foreclosure drama.
