Downtown L.A.’s 777 Tower Selling for Just $120M: Sources
By Greg Cornfield July 24, 2024 10:35 am
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A distressed office in Downtown Los Angeles has reeled in a new taker at a significantly discounted price, multiple sources told Commercial Observer.
The 777 Tower — standing 52 stories at 777 South Figueroa Street — is set to sell for $120 million, which is equal to about $117 per square foot. A syndicate of lenders led by Wells Fargo (WFC) is handling the lender note sale.
The building carried $289 million in debt when it defaulted.
One source said the buyer is a Chinese billionaire who will pay in all cash. A separate source said the deal is expected to close in the next couple of weeks.
In February 2023, news broke that a fund run by Brookfield (BN) Asset Management defaulted on the loans tied to 777 Tower as well as the Gas Company Tower in one of the first major signs of the oncoming wave of distress that engulfed the office real estate market the past 18 months. As the largest owner of office space in Downtown L.A., Brookfield became the biggest victim as the value of its expansive portfolio suffered shocking declines.
The firm put 777 Tower on the market in November 2023. This spring, a deal fell through to sell the property for $145 million to South Korea-based Consus Asset Management. That price was equal to about half of the remaining outstanding debt that’s tied to the tower.
Brookfield declined to comment.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
