Not welcome news...this is a major reason why investors tend to avoid giving dollars to more projs in dtla
. If devlpt like Oceanwide on Fig were gold mines, funders would be lining up to sponsor or take them over. I'm guessing equity residential out of chicago saw something about the proposed apt tower at the corner of 4th & Hill St that didn't pencil out...much less all the problems they had from threats of nimby type lawsuits...so they dropped their plans.
When ppl complain about new projs in dt not being taller or not being designed a certain way, or this or that, I wonder if they're aware of the long history of LA's economics? However, the market conditions in the arts dist admittedly do go against conventional wisdom.
Quote:
PacMutual Building in Downtown LA Hits the Market at Half Its Previous Price
Office investors want out of Downtown Los Angeles.
Ivanhoé Cambridge, the owner of the historic PacMutual building, put the property on the market for a big discount of $100 million, Commercial Observer has learned. Property records show the Canadian real estate firm paid $200 million for the landmark office building in 2015.
This comes as landlords throughout the city look to cut ties with traditional workspace amid an unprecedented drop in tenant demand following the COVID-19 pandemic and a surge in remote work. Indeed, just a block and a half away, the owners of the 62-story Aon Center are looking to sell their 1.1 million-square-foot tower for $48.5 million less than they paid to acquire it in 2014.
Downtown L.A.’s central business district already had a high office vacancy rate before the pandemic, and now it is up to around 25 percent, according to C&W’s fourth-quarter report.
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