Jade Enterprises has listed a mostly vacant office tower in Downtown Los Angeles for sale.
The L.A.-based investment firm has put 660 South Figueroa Street, a 24-story, 284,500-square-foot tower, on the market, according to a LoopNet listing. A team led by Newmark’s Kevin Shannon is marketing the property for sale.
No listing price was disclosed, though the deal would be a “significant” discount to what it could cost to replace the entire building — estimated to be more than $900 a square foot, or roughly $256 million.
Jade bought the property for $80 million in 2014, or roughly $281 a square foot, records show. The firm used a $55.4 million loan from U.S. Bank for the acquisition and refinanced with a $51.5 million loan from Acore Capital.
The balance of the loan has shrunk to $39 million. Jade is offering the buyer a deal to assume the loan, which matures in February 2027, with the acquisition.
Jade has spent $12 million over the last 10 years to renovate the building’s common areas and on tenant improvements, according to the listing.
The property is currently 37 percent leased — and about 12 percent of that is set to expire before 2027. No leases are scheduled to expire this year.
Offices in Downtown Los Angeles have been trading well below what Jade paid for the building in 2018, impacted by high interest rates and the City of L.A.’s transfer taxes, known as Measure ULA.
Earlier this month, The Swig Company sold an office complex at 617 West 7th Street for $20.5 million, or $94 a square foot, marking one of the lowest deals on a square-foot basis for an office property in the Downtown market.
The post Jade Enterprises puts mostly vacant LA office building up for sale appeared first on The Real Deal.
Uncategorized, Investment Sales, LA Office Market, Listing
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