Less than a month after The Real Deal reported the Brookfield-owned Wells Fargo Center — North Tower was on the market, its sister South Tower is, too. But it isn’t the loan being offered, and it isn’t Eastdil Secured offering it.
Newmark is shopping the downtown skyscraper at 355 South Grand Avenue, according to a marketing memorandum viewed by TRD. According to data and analytics provider Green Street, bids are anticipated to come in around $157 million, which wouldn’t cover the $263 million debt balance on the 45-story, about 1.2-million-square-foot office tower that came due — and the landlord is “facing pressure from its lenders.”
A $157 million deal would come out to roughly $131 per square foot.
It would be a lender-facilitated sale, per marketing materials. A buyer would get signage and naming rights, per the brokerage pitch.
Newmark’s Kevin Shannon confirmed the offering and said the brokerage was planning on obtaining purchase proposals in the first quarter. “It’s a fantastic basis play that will provide the new owner the type of trophy A product and the location that discerning DTLA tenants prefer,” he said.
The property is only 42 percent leased, per the brochure; the state of California is the largest tenant, occupying 10 percent of the rentable area. The three-story retail asset nestled between the twin skyscrapers is included in the deal for the North Tower, giving a South Tower buyer access to amenities without the burden of owning it. The offering touts a “trophy” asset at “just 25 percent of peak pricing,” the materials read.
The office tower on Bunker Hill was worth $450 million eight years ago, according to Green Street. It isn’t the only distressed Brookfield-owned Downtown Los Angeles property or debt in the midst of a marketing campaign.
Colliers is marketing the $275 million non-preforming note on EY Plaza and the defaulted $400 million commercial mortgage-backed securities loan on Bank of America Plaza; and Eastdil is marketing $506 million of defaulted debt backed by Wells Fargo Center’s North Tower.
Brookfield did not immediately respond to a request for comment.
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