"The latter, a creative office building in Venice, occupied by technology giant Google and designed by the late Frank Gehry, traded for $39.6 million, or about $500 per square foot. The other, an office tower on Bunker Hill, owned by Brookfield, which has defaulted on more than $500 million of debt tied to the property, could trade for $180 million, or about $130 a square foot, if and when a deal that's currently in the works closes."
"The $500-per-square-foot for the iconic Binoculars Building does give pause, however, as a reminder that Southern California is still working out its new normal. Industry players estimate the property probably would have traded for $1,000 per square foot before the pandemic, and its current price reveals a reset through the lens of (pun intended) one of the best-known creative office spaces in once desirable areas such as Silicon Beach."
Two recent Los Angeles office transactions show a bifurcated market with divergent pricing. A creative office building in Venice occupied by Google and designed by Frank Gehry sold for $39.6 million, about $500 per square foot. A Bunker Hill Class A tower owned by Brookfield, saddled with more than $500 million in defaulted debt, could trade for about $180 million, roughly $130 per square foot, if a pending deal closes. Downtown L.A. faces persistent challenges as a commercial hub and may see further distressed sales. Brookfield still holds other downtown office assets representing about a fifth of Class A inventory, which could set a bottom as they sell.
Read at therealdeal.com
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