EY Plaza edging closer to a deal

"A so-far undisclosed buyer was selected out of a bidder pool offering more than $100 million. Approvals were obtained and the potential buyer was provided with a loan sale agreement and joint escrow instructions a draft agreement calls for a 45-day due diligence period and 45-day close."

"A deal could still collapse, if it hasn't already. It happened before, when Carolwood's $130 million deal to purchase the downtown skyscraper now in a receiver's hands after owner Brookfield defaulted on hundreds of millions of debt fell apart."

"The $275 million note on the property is expected to trade at a discount. The property was valued at about $450 million in 2020; recent estimates put the value at $135 million."

EY Plaza, a downtown Los Angeles office tower, has attracted an undisclosed buyer from a pool offering more than $100 million. The buyer received loan sale agreements and joint escrow instructions with a proposed 45-day due diligence period and 45-day closing timeline. A previous $130 million deal by Carolwood fell apart, leading to a change in marketing brokers from Eastdil to Colliers. The $275 million note is expected to trade at a discount, with property valuations declining from $450 million in 2020 to approximately $135 million currently. Meanwhile, One California Plaza achieved positive leasing activity with a 26,000 square foot lease to law firm Gordon Rees and renewed its Citigroup lease, though occupancy remains at 55 percent.

Read at therealdeal.com