One of downtown’s most recognizable skyscrapers has a new owner after the biggest Los Angeles real estate deal of the year so far.
Brookfield Properties sold the 52-story Figueroa at Wilshire tower in an off-market transaction to Uncommon Developers for $210 million, or $201 per square foot. Brookfield acquired the roughly million-square-foot tower as part of a portfolio deal in 2006 and added it to a joint venture with other institutional partners in 2013.
The deal marks the largest commercial real estate sale in the market since January 2024 and the largest office sale since 2023, according to Colliers, which represented the buyer.
The "complex" sale required "a structure with a deed-in-lieu and seller financing," Colliers' Jordan Garcia, who helped represent the buyer, said in a statement.
Uncommon Developers, a private real estate firm based in the San Fernando Valley, plans to reposition the property, tapping Colliers to lead property management and leasing. The company is betting that competitive rates and fresh amenities will lure back tenants as downtown remains in a deep state of recovery with a record vacancy rate of 21.4%, well above the nation's 14% average.
Uncommon Developers is in buying mode: The firm acquired two office properties in Hollywood for $45 million late last year.
In downtown Los Angeles, several recent sales such as the Gas Company Tower have closed for discounts of 70% or more from peak pricing, according to CoStar data. Leasing activity remains about 25% below pre-pandemic levels, and tenants gave back 1.5 million more square feet than they leased in the past year.
Even so, the pace of transactions is showing signs of life. The number of office sales downtown over the past year has more than tripled year-over-year, according to CoStar data, as opportunistic buyers scoop up distressed assets below replacement cost and bet on a rebound. The Figueroa at Wilshire deal contributes to a 40% increase in national office sales as more private buyers and owner-users capitalize on such discounts.
Figueroa at Wilshire, at 601 S. Figueroa St., is roughly 75% occupied, with PwC as the building's largest tenant. Multinational law firm Dentons renewed the lease on its 62,383 square feet at the property this year.
The property includes a fitness center, tenant lounge and dozens of electric vehicle parking stalls — features Colliers hopes to market to budget-conscious tenants.
For the record
In addition to Garcia, Sean Fulp and Mark Schuessler of Colliers’ office capital markets practice advised the buyer on the acquisition. Newmark’s Kevin Shannon, Ken White, Rob Hannan, Laura Stumm and Michael Moll represented the seller.
Colliers' Matthew Heyn and Ian M. Gilbert of the firm’s Integrated Advisory Services Team will lead leasing efforts, while Kevin Rude and Tina Minook will lead full-service property management.