- Brookfield sold the 601 S. Figueroa tower in downtown Los Angeles for $210M, 42% less than the $360M it paid in 2005.
- Despite the loss, the $201 PSF price outperformed other recent downtown LA office sales, which have averaged $150 or less.
- The deal marks Brookfield’s continued retreat from downtown LA, where high vacancy rates and interest rate pressures have depressed office values.
Downtown Reset
The 52-story 601 S. Figueroa building — also known as Figueroa at Wilshire — is 73% leased and was one of Brookfield’s most prominent downtown LA holdings. Its sale marks another significant retreat for the firm, once the city center’s largest office landlord, reports Bloomberg.
Brookfield acquired the tower in 2005 for $360M. The recent sale to Los Angeles-based Uncommon Developers closed at $210M, representing a $150M loss, or 42% discount.
Signs of a Bottom?
Though a large markdown, the $201 PSF sales price surpassed other recent deals in downtown LA, which have hovered closer to $150. Newmark broker Kevin Shannon, who represented Brookfield, views it as a potential inflection point.
“I think the worst is behind us in downtown LA,” said Shannon. “Going for over $200 a foot is a step in the right direction.”
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The Buyer’s Bet
Uncommon Developers, a local firm focused on residential and office properties, sees value in distress.
“This is one of the most attractive entry points in recent memory,” said managing partner Ryan Hekmat, adding that the firm is actively pursuing similar deals.
The firm’s optimism comes amid a deeply challenged office market. According to CBRE, downtown LA’s total office availability rate — which includes vacant, sublease, and soon-to-expire space — reached 37.2% in Q1 2025, among the highest in the US.
Brookfield’s Downtown Pullback
The sale follows similar markdowns on Brookfield’s other LA assets. The Bank of America Plaza was appraised at $212.5M last year, down 65% from its 2014 value. The nearby Gas Company Tower sold for $200M in 2023 — a fraction of its former $630M valuation.
Brookfield declined to comment on the recent sale.
Why It Matters
The sale underscores the pain in the LA office market — but also hints at growing investor interest in discounted assets. While large landlords like Brookfield retreat, opportunistic buyers are stepping in to place long-term bets on recovery.
What’s Next
As distress sets new pricing benchmarks, more institutional landlords are starting to mark down assets or put them up for sale. Meanwhile, private capital like Uncommon Developers could play a larger role in shaping the next chapter for downtown Los Angeles.
