Months after transferring ownership following a foreclosure sale, the office tower at 444 S. Flower St. in downtown Los Angeles is on the cusp of a reversal of fortune as current owner Oaktree Capital Management has secured a loan extension for the property. According to property records, the 48-story building will receive roughly $259 million in financing from American General Life Insurance.
“The building’s team now has the resources to more aggressively secure new tenants, continue our lease-up trajectory, and look for ways to enhance the experience for current and prospective tenants,” said Oaktree Managing Director, Justin Guichard. “We know that a return to office will drive a flight to quality. Oaktree has been a constant presence in downtown Los Angeles for nearly three decades and is excited to invest directly into an office project that is in our backyard.”
In addition, the owner secured the services of Hayley Blockley, Josh Wrobel and Peter Hajimihalis of JLL to get the tower leased up. CBRE will manage the property, also known as FourFortyFour. Since taking over the building in January, Oaktree has already leased 90,000 square feet.
FourFortyFour’s previous owner, real estate investment firm Coretrust Capital Partners, had acquired the 914,343-square-foot Bunker Hill office space in 2016 for a total of $336 million. Two years later, Coretrust refinanced the property with a $209.6 million senior loan from AIG and a $64.7 million three-year mezzanine loan from Oaktree at an 8.6% interest rate. By the start of 2023, Coretrust owed $110 million on the loan, with 23% of 444 S. Flower St. still sitting vacant.
Having trouble finding the right office space for your business? CommercialCafe.com can help you choose between top-notch listings across all major U.S. markets and get the best fit for your company’s needs.
