L
os Angeles County is moving forward with its plan to buy the Gas Company Tower for $200 million, a significant deal in the Downtown market. The county's Board of Supervisors will consider approval of a notice stating its intent to purchase the building at next week's meeting. This follows several closed-door negotiations and would include the 1.4 million square-foot tower at 555 West Fifth Street, as well as the World Trade Center parking garage with over 1,200 spaces.
The high-rise was placed in receivership last April after Brookfield Asset Management defaulted on debt tied to the building due to rising interest rates and a slowdown in leasing activity. KeyBank National Association has since taken over as special servicer. The building's value has dropped significantly, from $214.5 million in an appraisal this year to over 60% less than its 2021 valuation.
The Gas Company Tower is currently 57% leased, with Southern California Gas Company set to move to a new location nearby. Downtown's office market faces challenges, including a second-quarter vacancy rate of 31.5%, according to CBRE. The Bunker Hill neighborhood where the tower is located has a slightly lower vacancy rate and average asking rents of $4.02 per square foot in the second quarter.
realestate
LA County Approves $200M Purchase of Downtown Landmark Building
Los Angeles County's $200M plan to buy Gas Company Tower moves forward, potentially largest Downtown office deal this year.
Read More - realestate
realestate
Buyer found for Robin Williams' previous Seacliff residence
Seacliff home of Robin Williams sells after a year on the market
Read More - realestate
realestate
Potential for Development in Far North Side with Broadway Upzoning
Zoning proposal aims to transform Broadway on Chicago's Far North Side
Read More
realestate
Buyer found for Robin Williams' previous Seacliff residence
Seacliff home of Robin Williams sells after a year on the market