Oaktree Capital Management has secured a loan extension at FourFortyFour South Flower, a 48-story, 914,000-square-foot office tower in downtown Los Angeles. The property is subject to a $258.8 million loan from AIG Insurance Co., now set to mature in 2026, according to CommercialEdge information.
The loan extension provides the opportunity to finance the implementation of new leases, spec suites and amenities within the building, according to the ownership, also enabling funding for future projects. Oaktree will invest in enhancing FourFortyFour, transforming it into a more sustainable building.
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Oaktree assumed ownership of the building after a UCC foreclosure in January. To handle the leasing process, the firm tapped a JLL team comprising Managing Directors Hayley Blockley, Josh Wrobel and Peter Hajimihalis. Additionally, CBRE was retained to oversee property management.
Since the acquisition, the owner secured leases for a total of 90,000 square feet. According to CommercialEdge, Esquire Depositions Solutions, PeopleSpace, Syska Hennessy Group, Project Management Advisors and Chelsea Management are among the tenants at the property.
An LA skyscraper achieving new sustainable heights
FourFortyFour South Flower is one of the early multi-tenant commercial office buildings in downtown L.A. to achieve Carbon Neutral status, said Blockley in a prepared statement. The building holds several certifications, including WELL-Building for Health and Safety, LEED Gold, Global Biorisk Advisory Council star rating, Energy Star Certification, a BOMA Earth Award, as well as UL’s Tier 2 and Tier 3 Healthy Building Verification for Indoor Environment.
Designed by AC Martin, the office tower came online in 1981 and underwent cosmetic renovations in 2011, CommercialEdge shows. The property features an open-air atrium and multiple levels of terraces. Additionally, three of the tenants have created indoor/outdoor balconies by carving out windows on the corner of Fifth and Flower.
Boosting workers’ return: amenity-rich properties in focus
Blockley also added that, amid the ongoing evolution of the downtown Los Angeles office market, leasing interest predominantly stems from companies specifically seeking amenity-rich properties meant to encourage the return to office of their workforce.
FourFortyFour South Flower encompasses a handful of on-site amenities including a fitness facility, a restaurant and a Starbucks, as well as a hair and nail salon, in addition to a shared conference and events center.
The vacancy rate in Los Angeles stood at 14.4 percent by the end of April, according to a recent CommercialEdge report. When it comes to sales volume, Los Angeles emerged as the leader of the Western region, with deals totaling $629 million at an average price of $251 per square foot year-to-date through April.