Uncommon Developers Gets $150 Million Loan for DTLA Offices

Uncommon Developers will get some help in its acquisition of the Figueroa at Wilshire building in downtown Los Angeles in the form of a $150 million loan package.

The Los Angeles-based firm secured roughly $150 million from Barings, a subsidary of Massachusetts Mutual Life Insurance Company, and Nuveen, a subsidiary of Teachers Insurance and Annuity Association, Commercial Observer reported. Both companies financed the property for previous landlord Brookfield Properties over a decade ago. The exact amount was not disclosed.

Uncommon acquired the 52-story tower from Brookfield Properties early in June for $210 million, or approximately $201 per square foot. In 2013, MassMutual and TIAA provided Brookfield with a $250 million refinancing package tied to the building at 601 South Figueroa Street. Brookfield placed the skyscraper up for sale in 2022 but struggled to find a buyer.

Last April, Brookfield secured a maturity date extension on its loans tied to the Figueroa at Wilshire building. The extension contrasts with Brookfield’s other downtown properties that ultimately went into default, such as EY Plaza down the street at 725 South Figueroa Street and Gas Company Tower at 555 West 5th Street.

Brookfield’s offloading of the building was “a landmark sale for downtown L.A.,” Colliers’ Mark Schuessler, who arranged the deal with Uncommon, told The Real Deal early this month.

Newmark’s Kevin Shannon, who represented Brookfield in the sale, told TRD in a statement 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.”

Figueroa at Wilshire is currently 72 percent leased, according to CO. PricewaterhouseCoopers is the building’s anchor tenant along with law firms Dentons and Cozen O’Connor.— Chris Malone Méndez