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.
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