601W Cos. Obtains $132M to Acquire Los Angeles Asset
The seller had defaulted on the loan associated with the property.
601W Cos. has secured $132 million in financing for its acquisition of 333 S. Grand Ave., a 55-story office tower totaling more than 1.4 million square feet in the Bunker Hill submarket of downtown Los Angeles. The property also includes about 1,700 parking spaces in a market where parking availability is an important factor in leasing decisions.
The property, sold by Brookfield, is distressed. The financing amount represents a fraction of the debt of $506 million or so that’s in default on 333 S. Grand Ave., The Real Deal reported. The asset is also known as Wells Fargo Center’s North Tower.
The loan funds not only the acquisition but also provides an additional $48 million facility for future leasing costs. Current tenants include major law firms and financial institutions.
The building occupies a full city block with protected setbacks. 333 S. Grand Ave. has had more than $63 million in recent capital improvements, including the full redevelopment of the Halo retail center, a lobby renovation and elevator modernization.
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The loan was originated through Northwind Debt Fund III, Northwind Group’s latest closed-end credit vehicle focused on real estate debt investments in major U.S. markets. The transaction reflects New York-based Northwind’s most active year to date, with 2026 expected to mark the highest annual origination volume in the firm’s history.
LA office market has bounced back
Los Angeles’ office fundamentals are relatively strong, Yardi Matrix data shows. Construction activity remained high compared to other markets, though office completions slowed down in the beginning of 2026. Investors are still interested in LA office assets, especially as pricing has adjusted.
In early 2026, Los Angeles’ office vacancy rate came in at 14.6 percent, a 170-basis-point year-over-year decline, reflecting current office space trends. The figure was lower than the 18.2 percent national rate and the fourth-lowest nationwide after Manhattan, Tampa, Fla., and Miami.
Moreover, LA office listing rates recorded a 10.7 percent rise year-over-year, the second-highest increase nationwide, after Atlanta’s 11.2 percent, Yardi Matrix reported.
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