The 55-floor Bank of America Plaza was appraised at US$188.9 million,
The Bank of America Plaza, a 55-floor tower that hosts the home office of asset manager Capital Group, was appraised at US$188.9 million, down from US$605 million 10 years ago, according to a filing last week for the property’s mortgage.
U.S. office values have plunged and vacancies soared since the double shock of the post-pandemic vacancy increases and soaring borrowing costs. Office values in U.S. central business districts fell almost 53 per cent from March 2022 through September, according to MSCI Inc.
The BofA Plaza, built in 1974 and renovated in 2009, has US$400 million in commercial mortgage-backed security debt that matured on Sept. 1 without being paid off or refinanced. It was 79 per cent leased as of July.
“We remain in discussions about a path forward for the loan and building,” Andrew Brent, a Brookfield spokesman, said in an email.
The loan has been managed since July by special servicer CWCapital, which declined to comment.
The BofA Plaza is one of seven properties in the Brookfield DTLA portfolio, all but one of which have defaulted on a total US$2.2 billion in debt. The portfolio included the Gas Company Tower, once valued at more than US$630 million, which the County of Los Angeles has agreed to purchase for an amount not to exceed US$200 million.
While the U.S. office market struggles, other types of commercial real estate have shown signs of green shoots.