The AON Center in Downtown Los Angeles just sold for $147.8 million per the Real Deal. This sales price was a 45% discount from the October 2014 acquisition price of $268.5 million ($242/SF) paid by Shorenstein Partners. The buyer is Carolwood, a LA-based investment firm. The sale price was among the lowest for any office building in central Los Angeles recently at only $134/SF.
The property, located at 707 Wilshire Boulevard, was sold to stave off a potential foreclosure situation. The original asking price was $220 million and according to The Real Deal an offer for $380 million was turned down prior to the Covid-19 pandemic.
The tower has over 1.1 million SF of space and is the 3rd highest building in downtown LA.
Sean Fulp, Vice Chair of West Region capital markets of Colliers noted ““The ownership group’s acquisition of the iconic Aon Center exemplifies the flow of private capital into Los Angeles, seizing the opportunity created by market dislocation.”
Kevin Shannon, co-head of U.S. capital markets for Newmark who represented the seller, said in an email to CoStar News: “The sale of Aon Center provides the buyer with a significant basis advantage which will allow the new ownership to capture leasing market share within the Downtown Los Angeles market, It is likely that those assets with a reset basis will be able to compete more effectively for tenants in the market.”