Brookfield's 777 Tower in DTLA Finds New Buyer for Half its Debt Value

A potential buyer has been identified for the office tower at 777 S. Figueroa St. in Downtown Los Angeles, according to sources. This distressed property, owned by Brookfield DTLA Fund Office Trust Investor, is expected to sell for $120 million. This sale price is significantly lower than the $289 million debt tied to the building when it went into default in February 2023. Wells Fargo is spearheading the group of lenders responsible for the sale of the note.

Previous Sale Attempts

The 52-story 777 Tower was listed for sale by Brookfield late last year. Previously, there was a plan to sell the building to South Korean investor Consus Asset Management for $145 million, but the deal fell through this spring. Brookfield has declined to comment on the current potential sale.

Challenges with Other Brookfield Properties

Brookfield is also dealing with issues related to another of its properties, The Gas Company Tower at 555 W. Fifth St. This building is connected to a $465 million debt that went into default in February 2023. The property is scheduled for a foreclosure auction next month, according to Bisnow.

Market Activity in Downtown Los Angeles

The market for distressed properties in Downtown Los Angeles has been active. Alongside news of Brookfield's properties, a stalking horse bidder has emerged for the partially constructed Oceanwide Plaza project, which is plagued with graffiti. An auction for this property is anticipated in September.