Uncommon Developers Pays $210M for LA Office Tower
The asset traded at a 42 percent loss.
Uncommon Developers has acquired Figueroa at Wilshire, a 1 million-square-foot office tower in Los Angeles’ Financial District, for $210 million, or approximately $202 per square foot. Brookfield Properties previously owned the asset, according to CommercialEdge. Newmark represented the seller and provided support on debt strategy and financing considerations, while Colliers worked on behalf of the buyer.
The current transaction marks the largest commercial sale in Los Angeles County since January 2024, according to Colliers, even though the office building changed hands at a 42 percent loss.
READ ALSO: LA Was Among Hotspots for Office Investment in 2024
The asset had been under Brookfield Properties’ ownership since 2005, when the company purchased it from Hines Interests for $356.7 million or $343 per square foot, the same source shows.
In 2013, Figueroa at Wilshire became the subject of an 11-year, fixed-rate $250 million refinancing package issued by Massachusetts Mutual Life Insurance Co. and TIAA. The property had been on the market since 2022, Commercial Observer reported.
Figueroa at Wilshire, up close
Completed in 1990, the 52-story tower at 601 S. Figueroa St. has floorplates averaging 23,102 square feet and first-floor retail. Amenities at the LEED Gold-certified building include a 75-foot atrium, a fitness center, an open-air plaza, multi-level parking with EV charging stations and on-site dining options.
Figueroa at Wilshire was 72 percent leased at the time of the sale. PricewaterhouseCoopers anchors the property under a 135,000-square-foot lease. The roster also includes Goodwin Procter Los Angeles, CBRE, Dentons, Seyfarth Shaw, Banc of California and Acumen. A Colliers team will spearhead marketing and leasing at the property going forward.
Located at the intersection between Figueroa Street and Wilshire Boulevard, the high-rise is less than 2 miles from the city’s downtown and within walking distance of the Seventh Street Metro Center. Major thoroughfares in the area include interstates 10 and 110, as well as U.S. Route 101.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon and Executive Vice Chairman Alex Foshay, together with Vice Chairmen Ken White, Rob Hannan, Laura Stumm and Michael Moll and Director Alex Beaton, represented Brookfield Properties. Additionally, Newmark Co-President Jonathan Firestone, Vice Chairman Blake Thompson and Director Henry Cassiday arranged the debt strategy and financing. Colliers Executive Vice President Mark Schuessler, Associate Vice President Jordon Garcia and Vice Chairman and Head of Office Capital Markets Sean Fulp worked on behalf of the buyer.
One of the top 10 markets for office sales
The office investment volume in Los Angeles reached $638 million year-to-date through April, properties trading at an average of $298 per square foot, according to a recent CommercialEdge office report. This places the metro on the sixth position for office sales across the U.S., trailing behind Manhattan ($2.6 billion), Washington D.C ($1.4 billion), the Bay Area ($1 billion), Houston ($865 million) and Chicago ($759 million).
Nationwide, investment volume amounted to $14.2 billion since the start of the year all the way through April, with an average price per square foot of $191.
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