Brookfield Sells FIGat7th for More Than $60 Million

Brookfield has successfully sold one of its downtown Los Angeles commercial properties as the firm executes a wider disposition of its assets in the area.

JH Real Estate Partners acquired the FIGat7th retail center at 735 South Figueroa Street for between roughly $65 million and $70 million, Bisnow reported, citing a source with knowledge of the deal.

Brookfield listed the property late last year which was expected to fetch roughly $70 million, The Real Deal reported at the time. When Brookfield first listed it, the property was 85.8 percent occupied with anchor tenants including Target, Sephora and Zara.

JH Real Estate is no stranger to retail properties in Greater Los Angeles. Last year, the Newport Beach-based firm plunked down $37.5 million for the Village Walk Center mall in Pico Rivera, TRD reported.

In 2023, Brookfield secured a three-year extension to pay back its loan on the 330,000-square-foot FIGat7th property. The debt had ballooned to $61.7 million by the end of last year, according to Bisnow. The loan was slated to mature on April 1, though there was an option to extend the maturity date to May 29 if the mall was in the process of being sold, per financial statements cited by the publication.

The Brookfield affiliate that owns the shopping center entered an agreement to sell it in March. The undisclosed sales price is enough to “fully satisfy the outstanding debt” tied to the property, according to the filings.

The FIGat7th sale marks Brookfield’s second retail disposition in the L.A. area in recent months. In March, the firm sold the Victoria Gardens shopping center in Rancho Cucamonga for $530 million, or approximately $441 per square foot. That transaction marked one of the priciest retail property sales in Southern California history.

Brookfield isn’t done selling properties yet. The company is still looking to offload a swath of office towers in downtown L.A. after their values spiraled in the post-pandemic years following a broader shift to hybrid and remote work and diminished demand for office space from many tenants.

Next door to FIGat7th, Brookfield is still looking for a buyer for EY Plaza at 725 South Figueroa Street. The office tower is currently in receivership as Brookfield had more than $300 million of debt tied to the property as of the end of last year, per Bisnow.

Brookfield is also looking to sell the north and south towers of the Wells Fargo Center as they’re in maturity default with $505.7 million and $267 million in debt, respectively. A $400 million mortgage for Bank of America Plaza is also in maturity default; the office building in Bunker Hill has been in receivership since last June. — Chris Malone Méndez