Trending

Brookfield offloads distressed office tower in DTLA for $210M

Uncommon Developers snapped up property on Figueroa Street in off-market sale for largest sale since January last year

Brookfield Offloads Downtown Office Tower for $210 Million
Listen to this article
00:00
1x

Key Points

AI Generated.
  • Brookfield Properties sold an office tower at 601 S. Figueroa Street to Uncommon Developers for $210 million in an off-market sale.
  • The sale was the largest commercial sale in Los Angeles County since January of the previous year, despite being less than the $250 million in debt tied to the property.
  • Newmark represented the seller, Brookfield, and Colliers represented the buyer, Uncommon Developers.

Brookfield Properties offloaded another Downtown Los Angeles office tower for less than the debt tied to the property.  

Uncommon Developers bought 601 S. Figueroa Street for $210 million, or $201 per square foot, in an off-market sale, according to a spokesperson for Colliers, which represented the buyer. 

It’s the biggest commercial sale in Los Angeles County since January last year, but not big enough for Brookfield to break even on $250 million in debt tied to the 52-story tower, which was originally set to mature last July. The Toronto-based landlord won an extension until October, as The Real Deal previously reported. 

A source familiar with the sale told TRD that the loan is unimpaired, meaning Brookfield’s lenders — Massachusetts Mutual Life Insurance and the Teachers Insurance and Annuity Association — will collect the full balance. That’s a rare happy outcome for Downtown Los Angeles’ struggling office sector, the source said. 

“This is a landmark sale for Downtown L.A.,” said Colliers’ Mark Schuessler, who arranged the deal for Uncommon in the deal along with colleagues Sean Fulp and Jordan Garcia.

Sign Up for the undefined Newsletter

The Figueroa Street, also known as Figueroa at Wilshire, is 72 percent leased, according to L.A. Business First

Newmark’s Kevin Shannon, who represented Brookfield in the sale, said in a statement to TRD that the deal is proof that Downtown office space is becoming more valuable in L.A. 

“This is an important sale for the DTLA office market,” Shannon said. “Crossing the $200-per-square-foot hurdle is a clear sign of improvement. The market has clearly passed bottom.” 

Brookfield has been shrinking its Los Angeles office portfolio after getting hit with a series of defaults in the wake of the pandemic.

The company sold 777 South Figueroa Tower, another one of its trophy office towers in Downtown Los Angeles, last year for $145 million, or about half of the outstanding debt on the property, which defaulted in 2023. 

Recommended For You