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Half of LA metro office sales between 2025 and 2026 were at a loss
Bisnow links the losses to lender-driven distress, including Bank of America Plaza selling for $210 million after a $400 million CMBS loan default.
Bisnow reports that 50% of Los Angeles metro office sales in the 12 months between the second quarter of 2025 and Q2 2026 closed at a loss, as distress spreads through the market. The outlet says the dynamics are lender-driven, with many sellers being lenders or effectively forced to sell below prior valuations.
Newmark co-Head of Capital Markets Kevin Shannon told Bisnow that sales can be losses when sellers are lenders, even if the buyer is not. The article says the Bank of America Plaza transaction earlier this year followed a default by a Brookfield Properties entity on a $400 million CMBS loan secured by the property.
Bisnow adds that Bank of America Plaza sold for $210 million, about $150 per square foot, compared with an appraisal of $212.5 million in late 2024. The article also cites a subsequent Brookfield sale of 333 S. Grand Ave, known as the Wells Fargo Center North, to The 601W Cos, listing a reported price of $150 million, or $107 per square foot, in a Colliers office report.
The article also notes that the Bank of America Plaza property was valued at $605 million 10 years earlier, illustrating the decline tied to current distress conditions. Bisnow did not announce the Brookfield 333 S. Grand Ave price itself, but the Colliers report it cites provides a figure.