LA’s Third-Tallest Building Sells for 45% Less Than Its Last Price
Sale marks Downtown L.A.’s largest post-pandemic office sale
By Greg Cornfield December 23, 2023 4:55 pm
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The third-tallest building in Los Angeles — the 62-story Aon Center — has traded hands for a huge discount amid the historic decline in demand for traditional office real estate.
Shorenstein sold the 1.1 million-square-foot office tower for $147.8 million, marking the largest post-pandemic office sale in Downtown Los Angeles and the only tower to trade over one million square feet since 2020, according to Colliers (CIGI), which facilitated and announced the sale.
Despite those accolades, the deal is emblematic of sinking office values around Southern California, especially in Downtown L.A., considering Shorenstein acquired the building for $268.5 million in 2014. Commercial Observer first reported the asset was on the market about 11 months ago for about $220 million.
In the latest deal, Beverly Hills-based Carolwood acquired the Aon Center at 707 Wilshire Boulevard along with investors Daniel Abrams and Adam Tischer, who was also part of the brokerage team.
“The ownership group’s acquisition of the iconic Aon Center exemplifies the flow of private capital into Los Angeles, seizing the opportunity created by market dislocation,” Colliers’ Sean Fulp said in a statement. “With a new low basis and a well-capitalized owner, Aon Center will be competitively positioned to attract and retain tenants who desire a well-amenitized skyline tower in the heart of Downtown Los Angeles.”
Fulp and Tischer assembled the ownership group.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
