William Morris Auction Shelved

An auction of the famed William Morris Agency headquarters has reportedly been shelved, with the New York lender in talks with borrower Cape Horn Group to buy out the Beverly Hills, Calif., property.

Brickman, the real estate investment firm behind the loan, has foreclosed on the buildings and had planned to sell the loan. However, an e-mail from the broker who has the listing said the auction was postponed while the two sides negotiate a deal.

A resolution would “involve a consensual transfer of the property to the lender,” according to the e-mail quoted by trade paper The Hollywood Reporter, and likely require a deed in lieu of foreclosure. Such a maneuver would enable the lender to take ownership from the borrower in default without going through the foreclosure.

A sale at auction was not a given, since the property is reportedly now worth much less than its outstanding debt. About $90 million is reportedly owed on the note and the current value of the property is about $80 million, according to THR.

William Morris Endeavor, the successor company to WMA, now leases space in the complex for its commercial and music departments, and for part of its accounting group. Live Nation also leases space in the complex.