South Korean investment manager Consus Asset Management has agreed to pay $145 million, or $145 per square foot, for the one-million-square-foot office tower at 777 S. Figueroa St. in Downtown Los Angeles, reported Bloomberg News. The company is buying the 52-story building at a deep discount from a Brookfield Properties affiliate that had assumed it through its 2013 acquisition of MPG Office Trust Inc. 

Trepp reported that the Brookfield affiliate had defaulted on the property’s $318.6 million of debt in 2022. Late last year, Eastdil Secured was hired to find a buyer. 

A $268.6-million piece of the debt is held by a group of banks led by Wells Fargo Bank and pays a coupon pegged to Libor plus 180 basis points, according to Trepp. The remaining debt is held by Mesa West Core Lending Fund. The entire debt package is scheduled to mature in October. 

The 52-story building, which opened in 1991, is now 52% leased, down from 73.1% a year ago. 

Lee & Associates finalized the $18-million sale of a four-story, 86,459-square-foot building at 777 E. 10th Street in Los Angeles. The seller foreclosed upon the property in February of 2022.

Matthew Sullivan, managing broker of Lee & Associates Investment Services Group, represented the seller in the transaction, CSAIL 2015-C1 Commercial Mortgage Trust. Jim Halferty and Mike Smith of the Lee & Associates Commerce office represented the buyer, Very J, Inc.

The property was 43% occupied at closing and the buyer will occupy several floors of the property as their corporate headquarters. Built in 2009, 10 Crowne Wholesale Center is located between Crocker Street and Towne Avenue in the Los Angeles downtown fashion district.

Colliers arranged the $13,450,000 REO sale of a 43,700-square-foot mixed-use retail/office property, 1001 Towne Ave., located in the Fashion District of Downtown Los Angeles. EVP Mark Schuessler, vice chair Sean Fulp and EVP Ryan Plummer represented the Seller.

The property offered an attractive value-added opportunity for an investor to acquire the asset with substantial in-place cash flow and additional upside by leasing up the existing vacancy, according to Colliers.

“We were thrilled to deliver a successful exit and significant recovery for the special servicer,” said Schuessler. “The auction process was a huge success with over 100 signed confidentiality agreements and a deep pool of bidder interest. This was a great example of how the auction process can work for the right assets.”

At the time of sale, 1001 Towne was 82% leased to a diverse mix of retail and wholesale apparel businesses. The property was acquired by a local private individual, represented by Mark Hong of KORUS Real Estate.