Another blow for struggling Los Angeles as iconic building with more than a century of famous history faces demise

By WILKO MARTÍNEZ-CACHERO, US REPORTER Published: 15:39, 19 June 2026 | Updated: 15:50, 19 June 2026 A historic building in Los Angeles with more than 100 years of history could soon be seized as the City of Angels' downtown continues to struggle. The 10-story Metropolitan building at Broadway and 5th Street, once considered to be ideally situated at the heart of downtown LA's historic core, faces foreclosure, according to the Los Angeles Times. The Beaux Arts-style building, built in 1913 by renowned English-born architect John Parkinson, includes 88 apartments, as well as a rooftop pool and a fitness center. Even as the Metropolitan faces foreclosure, its units remain 91 percent occupied, per the outlet. Michael Fallas, the former CEO of discount retailer National Stores, bought the iconic 160,000-square-foot space in the late 1990s, having been raised around the area. Fallas' lender, represented by a special servicer, asked the Superior Court of California for a judicial foreclosure of the building earlier this month. The servicer claimed that Fallas had stopped paying a $32 million loan as far back as 2017, the LA Times reported. The building's potential demise marks another blow for downtown LA, which has been unable to attract and maintain businesses, shoppers and visitors as it deals with homelessness, open air drug use and high rent. The historic Metropolitan apartment building in downtown Los Angeles, built in 1913, is facing foreclosure after its owner, Michael Fallas, reportedly stopped paying a $32 million loan Fallas, the former CEO of discount retailer National Stores, said in 2011 that he loved the iconic building A looter takes a suitcase with stolen clothing from the Fallas Paredes store along Broadway in downtown LA (Picture from May 2020) Your browser does not support iframes. The Metropolitan building sits just minutes away from Los Angeles' Grand Central Market, a popular tourist attraction, and the city's main library. Its debt comes out to about $200 per square foot, according to The Real Deal. The Fallas family has been trying to sell the property, per a Zacuto Group and Northmarq offering memorandum viewed by the outlet. A price was not immediately advertised. The historic space also features an empty ground floor retail space, which was previously a 40,000-square-foot store specializing in discount apparel run by Fallas. The store, named Fallas Paredes, closed in 2018 after its parent company, National Stores, filed for bankruptcy.  Fallas Paredes branding was still visible, though faded, in recent pictures of the historic building. According to Fallas, he was raised around the area and worked as a stock boy for his father in 1975. 'I love this building,' he told the LA Downtown News in April 2011. Though the Metropolitan was once situated in the middle of the west coast city's hustle and bustle, its surrounding area has been on a downward spiral since the COVID-19 pandemic. Fallas once posted a picture in March 2018 of a massive protest outside his building in downtown LA Downtown Los Angeles has dealt with massive homelessness problems, as well as open air drug use and perceived safety issues that are keeping locals, visitors and businesses away The City of Angels' downtown has been on a decline since the COVID-19 pandemic Los Angeles has one of the least vibrant downtowns in the entire world, according to a survey released last month Los Angeles was recently found to have one of the least vibrant downtowns in the world, according to Gensler's 2026 City Pulse survey released last month. Restaurants, shops and stores have been gradually leaving LA, especially over the last two years. 'LA's kind of central problem is that businesses have left LA,' Kelly Farrell, the managing director of Gensler's LA office, told the LA Times. 'We need them to bring the offices back in.' Farrell added: 'Bring the people back in so they're staying after work and interacting with those businesses that are in the area.' Businesses have struggled to fill out downtown LA, with about one-third of its office space sitting empty, according to KCRW. Additionally, locals have been concerned about apparent safety issues downtown, with a perceived lack of police presence and reports of shoplifting, robberies and assaults. This was a flashpoint during the recent LA mayoral primary, as reality TV star turned political hopeful Spencer Pratt bashed incumbent mayor Karen Bass and progressive challenger Nithya Raman for supposedly creating and allowing the dilapidated conditions. The Daily Mail has reached out to Fallas for comment. No comments have so far been submitted. 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