![\"Placeholder\"\/](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/10\/placeholder.png\")
<\/p>\n <\/p>\n
A major tenant at a\u00a0distressed Downtown LA office tower\u00a0will be its next owner.\u00a0<\/p>\n
Investment firm Capital Group<\/a> is buying the Bank of America Plaza<\/a> at 333\u00a0S. Hope St. The seller was a Brookfield Properties<\/a> entity that defaulted\u00a0on a $400M CMBS loan<\/a>\u00a0secured by the property last year and\u00a0put it up for sale<\/a>\u00a0shortly after.\u00a0<\/p>\n Capital Group plans to consolidate its LA operations at the\u00a0office tower, which will eventually be home to more than 2,100 employees,\u00a0the firm said in a statement<\/a>. The company manages $3.4T in assets globally.\u00a0<\/p>\n Capital Group has been a tenant of the tower since 1978, according to a representative for the firm. It was one of the first tenants at the tower, then called Security Pacific Plaza,\u00a0the Los Angeles Times previously reported<\/a>.\u00a0It leases about 320K SF at the 1.4M SF property, and its last 15-year renewal was set to expire in 2030.<\/p>\n It is the largest tenant in the building, though Bank of America still occupies space there. Capital Group didn’t provide additional information about existing tenants or\u00a0its future at the building.<\/p>\n \u201cWe knew the best landlord we could possibly have would be ourselves,\u201d Capital Group CEO Mike Gitlin\u00a0told Bloomberg<\/a>. \u201cThe best way to ensure a great environment in downtown LA is to create what we\u2019re calling a vertical campus.\u201d<\/p>\n Capital Group announced its agreement to purchase\u00a0the tower but did not disclose a sale price. The 55-story\u00a0building\u00a0last appraised\u00a0for $212.5M in late 2024, according to The Real Deal<\/a>.\u00a0It had been valued at $605M 10 years\u00a0prior.\u00a0<\/p>\n A source familiar with the deal\u00a0told Commercial Observer<\/a>\u00a0the building traded hands for about $150 per SF, which, for the roughly 1.4M SF building, would work out to approximately $210M. Brookfield declined to comment on the sale.<\/p>\n