Jade Enterprises, a big investment company in Los Angeles, is making news because they’re putting up for sale a mostly empty office building at 660 South Figueroa Street.
This building is 24 stories tall and covers 284,500 square feet. Right now, it’s managed by Daniel Taban’s company. This sale is a big deal for the real estate market in Downtown Los Angeles.
They haven’t said how much they want for it officially, but it seems like they’re willing to sell it for a lot less than what it’s worth. It could be less than $900 per square foot, which is way less than the $256 million it would cost to build from scratch.
This decision by Jade Enterprises, advertised by Kevin Shannon and his team from Newmark, shows how the commercial real estate world is changing, especially in big cities like Downtown L.A.
Jade Enterprises’ Decision to Sell
Jade Enterprises bought the Figueroa Street tower for $80 million in 2014. Now, they’re selling it, showing a bigger picture of how the market is changing.
Even after spending $12 million to renovate it in the last ten years, only 37 percent of the building is being used, and a lot of leases will end before 2027.
This decision comes at a tough time for the office market in Downtown Los Angeles. There are high-interest rates and higher transfer taxes because of Measure ULA.
The sale includes the option for the buyer to take over the existing $39 million loan, showing how tricky the finances are for property owners right now.
What It Means for Downtown L.A.
The office market in Downtown Los Angeles is facing big challenges, with recent sales happening for way less than usual.
For example, The Swig Company sold an office complex on 7th Street for just $20.5 million, which is one of the lowest prices per square foot in the area.
This shows that investors might be thinking differently about how much properties are worth because of things like interest rates and tax policies. Jade Enterprises selling the Figueroa Street tower is a good example of what’s happening in the market right now.
Jade Enterprises selling 660 South Figueroa Street shows how complicated it is to manage commercial real estate when the market is unpredictable. This isn’t just about the money they’ll get from selling.
It’s also about how the broader economy and regulations affect property values and investment plans in big cities. As Downtown Los Angeles faces these challenges, people will be watching companies like Jade Enterprises to see what this means for the future of commercial real estate.
