LA’s Third-Tallest Tower Sells for 45% Below 2014 Price

[Nighthawk]

Aon Center, the third-tallest tower in Los Angeles, has sold for $147.8 million — about 45% less than its last purchase price in 2014 — as office values continue to suffer from high vacancies and financing costs.

The sale is the largest office deal this year in downtown Los Angeles, which has been among the hardest-hit US office markets since the pandemic as remote work becomes more popular and escalating interest rates drive down values, wiping out owners’ equity.

https://www.bloomberg.com/news/arti...d-tallest-tower-sells-for-45-below-2014-price

Now, that price is TRULY DEFLATIONARY!

 

[zdreg]

Please copy and paste article.

Winning deflation number(67%) is my local gypsy card reader. Price went from $25 to $10.

 

[destriero]

https://archive.ph/YUpPJ

 

[destriero]

The 40-story, 701,888-square-foot office building sold for between $105 million and $110 million, according to sources familiar with the deal. KBS REIT acquired the same building from Hines for $208 million in 2010, records show, and also completed a $20 million renovation.

Union Bank Plaza sale... incredible. 50% vacancy.

 

[hilmy83]

Aon Center, the third-tallest tower in Los Angeles, has sold for $147.8 million — about 45% less than its last purchase price in 2014 — as office values continue to suffer from high vacancies and financing costs.

The sale is the largest office deal this year in downtown Los Angeles, which has been among the hardest-hit US office markets since the pandemic as remote work becomes more popular and escalating interest rates drive down values, wiping out owners’ equity.

https://www.bloomberg.com/news/arti...d-tallest-tower-sells-for-45-below-2014-price

Now, that price is TRULY DEFLATIONARY!

The wiwang tower

https://gta.fandom.com/wiki/Wiwang_Tower

 

[murray t turtle]

Aon Center, the third-tallest tower in Los Angeles, has sold for $147.8 million — about 45% less than its last purchase price in 2014 — as office values continue to suffer from high vacancies and financing costs.

The sale is the largest office deal this year in downtown Los Angeles, which has been among the hardest-hit US office markets since the pandemic as remote work becomes more popular and escalating interest rates drive down values, wiping out owners’ equity.

https://www.bloomberg.com/news/arti...d-tallest-tower-sells-for-45-below-2014-price

Now, that price is TRULY DEFLATIONARY!

%%
GOOD news for the buyer, maybe.
WONDER how much the location ,location, location had to do with it??
DONt know LA, or earthquake insure premiums myself.

 

[S2007S]

Now if only housing prices could follow that kinda drop. Entire world economies need a correction!!

 

[Nobert]

Now if only housing prices could follow that kinda drop. Entire world economies need a correction!!

We had a 120 ft~ apartment, selling for $230 000 next to me. Might sound low for some, but it's eatern europe here, hour away from Russian borders.
Saw old Sillent Hill type of houses being sold for $1Mil + in NYC's outskirts. Rats as big as cats runnin around. (Laughs)
Heard that Australia is doing, just fine, as well.

Gonna be interesting.

 

[newwurldmn]

We had a 120 ft~ apartment, selling for $230 000 next to me. Might sound low for some, but it's eatern europe here, hour away from Russian borders.
Saw old Sillent Hill type of houses being sold for $1Mil + in NYC's outskirts. Rats as big as cats runnin around. (Laughs)
Heard that Australia is doing, just fine, as well.

Gonna be interesting.

Location, Location, Location.

The same house that's 5MM in a suburb of NYC (1 hour commute) is 1MM where i live (3 hours outside the city).

 

[Slow Learning Elf]

We had a 120 ft~ apartment, selling for $230 000 next to me. Might sound low for some, but it's eatern europe here, hour away from Russian borders.

That better come with a bomb shelter in the basement. I would not call it “cheap” by any means.

Saw old Sillent Hill type of houses being sold for $1Mil + in NYC's outskirts. Rats as big as cats runnin around. (Laughs).

NYC real estate is a unique beast. One of these houses, after some basic work can bring in a nice rental income (assuming the subway is close enough). FWIW, even in the worst of time, NYC prices declined relatively little (IIRC Manhattan prices dipped like 12% in 2008, though it was very uneven and there were deals to be had)