Downtown L.A.’s 801 Tower Sells for $60M: Sources
Unnamed Chinese investor paid about $129 per square foot in a deal that avoids Measure ULA
By Greg Cornfield August 6, 2024 1:55 pm
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A 25-story office building in Downtown Los Angeles has traded hands via loan sale, Commercial Observer has learned.
An unnamed Chinese investor paid $60 million, or about $129 per square foot, for the development known as 801 Tower, sources told CO. The 465,200-square-foot building at 801 South Figueroa Street is about 79 percent leased, one source said.
It was built in 1992 and Barings acquired the building for $178.2 million a decade ago, records show. New York Life Insurance Company provided a $100 million loan in December 2014.
NY Life managed the sale with Barings’ cooperation so as to immediately provide a deed in lieu of foreclosure, thus avoiding L.A.’s controversial Measure ULA transfer tax, which docks an additional 5.5 percent on sales over $10 million, one source explained.
Neither Barings nor New York Life Insurance Company returned requests for comment.
Eastdil Secured facilitated the transaction, and Asia Pacific Capital (APC) represented the buyer. Representatives for APC said the acquiring price was significantly below replacement cost.
“It’s an excellent time for individual investors to consider entering the market,” Roger Li, managing director at APC, said in a statement shared with CO.
Office sales have been mounting in Downtown L.A. the past few weeks. The County of L.A. is negotiating a $215 million acquisition — equal to about $153 per square foot — of the distressed Gas Company Tower, and a different Chinese investor is set to pay $120 million, or $117 per square foot, for 777 Tower.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
