Downtown LA Tower Finds Buyer After Brookfield Default

Brookfield’s Bank of America Plaza office tower in Downtown Los Angeles found a buyer from inside the building.

Capital Group entered an agreement to buy the 55-story building at 333 South Hope Street for $210 million or roughly $150 per square foot for the nearly 1.4-million-square-foot building, Commercial Observer reported, citing a source familiar with the tower. Capital Group, one of the world’s largest investment management firms, has its headquarters in the building.

Brookfield defaulted on an estimated $400 million in commercial mortgage backed securities debt connected to the skyscraper, and the debt was listed for sale last year, The Real Deal previously reported.

The Bank of America Plaza was last appraised in 2024 for $212.5 million, a 65 percent decline in appraised value from $605 million in 2016.

Brookfield acquired the building in 2013 as part of a portfolio purchase that made the asset manager the largest office landlord in Los Angeles. Seven years later, the pandemic ushered in remote work, sending the local office market into a spiral from which it is still recovering.

The sale is the latest from Brookfield’s slate of distressed real estate across Los Angeles.

Brookfield defaulted on a $506 million mortgage connected to the Wells Fargo Center North Tower office building at 333 South Grand Avenue, and the debt was listed for sale in November, The Real Deal reported.

A $275 million loan connected to EY Plaza, another Brookfield-owned tower, was placed in the hands of a receiver in 2023. The debt listing came after a $130 million deal to sell the building at 725 South Figueroa Street fell apart.

In June, Brookfield offloaded 601 South Figueroa Street in downtown to Uncommon Developers for $210 million, which was less than the debt tied to the building. — Chris Malone Méndez