T
he owner of a basement business beneath the historic Subway Terminal Building in Downtown Los Angeles has filed a lawsuit against Brookfield Properties, accusing them of causing water damage and refusing to take responsibility. The affiliate of City Storage Systems, a ghost kitchen and delivery firm, is seeking $5 million in damages. According to the complaint, Brookfield's refusal to address the issue has led to ongoing damage and decreased property value.

    The Subway Terminal Building, a 12-story Beaux Arts landmark built in 1925, was converted into luxury apartments by Brookfield in 2002. In 2018, City Storage Systems bought the basement for an undisclosed sum, only to discover extensive water damage and mold growth within a year. The company hired engineers who found pooled water, mold, and a musty odor throughout the basement.

    Despite signing a tolling agreement last July, Brookfield refused to accept responsibility or plan remediation work. The lawsuit accuses Brookfield of breaching their responsibilities under a 2007 agreement subdividing the property, as well as breach of fiduciary duty, negligence, and nuisance. City Storage Systems is seeking damages and compensation for decreased fair market value.