Introduction to Uncommon Developers’ New Loan
Uncommon Developers will get some help in its acquisition of the Figueroa at Wilshire building in downtown Los Angeles in the form of a $150 million loan package.
The Loan Package
The Los Angeles-based firm secured roughly $150 million from Barings, a subsidiary of Massachusetts Mutual Life Insurance Company, and Nuveen, a subsidiary of Teachers Insurance and Annuity Association, Commercial Observer reported. Both companies financed the property for previous landlord Brookfield Properties over a decade ago. The exact amount was not disclosed.
Acquisition of the Figueroa at Wilshire Building
Uncommon acquired the 52-story tower from Brookfield Properties early in June for $210 million, or approximately $201 per square foot. In 2013, MassMutual and TIAA provided Brookfield with a $250 million refinancing package tied to the building at 601 South Figueroa Street. Brookfield placed the skyscraper up for sale in 2022 but struggled to find a buyer.
Previous Financial Challenges
Last April, Brookfield secured a maturity date extension on its loans tied to the Figueroa at Wilshire building. The extension contrasts with Brookfield’s other downtown properties that ultimately went into default, such as EY Plaza down the street at 725 South Figueroa Street and Gas Company Tower at 555 West 5th Street.
Market Impact
Brookfield’s offloading of the building was “a landmark sale for downtown L.A.,” Colliers’ Mark Schuessler, who arranged the deal with Uncommon, told The Real Deal early this month. Newmark’s Kevin Shannon, who represented Brookfield in the sale, told TRD in a statement that the deal is proof that downtown office space is becoming more valuable in L.A. “This is an important sale for the DTLA office market,” Shannon said. “Crossing the $200-per-square-foot hurdle is a clear sign of improvement. The market has clearly passed bottom.”
Current Status of the Building
Figueroa at Wilshire is currently 72 percent leased, according to CO. PricewaterhouseCoopers is the building’s anchor tenant along with law firms Dentons and Cozen O’Connor.
Read More
Read more
Brookfield offloads distressed office tower in DTLA for $210M
Brookfield looks to sell DTLA’s Figueroa tower
Brookfield extends $250M in loans on DTLA Figueroa at Wilshire tower
Conclusion
The acquisition of the Figueroa at Wilshire building by Uncommon Developers, facilitated by a $150 million loan package from Barings and Nuveen, marks a significant transaction in the downtown Los Angeles office market. This deal not only underscores the improving value of downtown office space but also highlights the strategic financial maneuvers of major players in the real estate sector.
FAQs
- Q: How much did Uncommon Developers acquire the Figueroa at Wilshire building for?
A: Uncommon Developers acquired the Figueroa at Wilshire building for $210 million. - Q: Who provided the loan package to Uncommon Developers?
A: The loan package was provided by Barings and Nuveen. - Q: What is the current lease status of the Figueroa at Wilshire building?
A: The building is currently 72 percent leased. - Q: Who are the anchor tenants of the Figueroa at Wilshire building?
A: PricewaterhouseCoopers, along with law firms Dentons and Cozen O’Connor, are the building’s anchor tenants.
