Shorenstein Sells LA Tower for $148M

The 62-story Aon Center traded for 45 percent less in 2014. Image courtesy of CommercialEdge data

In the largest post-pandemic office sale in downtown Los Angeles, a partnership between Carolwood LP and real estate investors Daniel Abrams and Adam Tischer has acquired Aon Center, a 1.1 million-square-foot office building, for $147.8 million.

The seller was Shorenstein, according to CommercialEdge data. Colliers assembled and advised the ownership group, while Newmark represented the seller.

The deal also marks the only high-rise over 1 million square feet to trade since 2020. The third-largest office tower in the metro changed hands for 45 percent less than its previous $268.5 million sale price in 2014, the same source shows. In 2018, Shorenstein took out a $159.9 million loan from Wells Fargo Bank for the 62-story high-rise.

Dating back to 1974, the LEED Platinum-certified building underwent a $15 million capex plan over the past 10 years that included upgrading the elevators and creating a new fitness center. The asset features floorplates averaging 19,782 square feet, 24 passenger elevators, some 830 parking spaces, collaborative spaces, conference rooms, a three-story lobby and EV charging stations. Other tenants at the 1-acre property include Meyers Nave, Morrison & Foerster and State Bank of India.

Located at 707 Wilshire Blvd., the transit-oriented building is close to a host of dining and retail options, including shopping malls The Bloc and Saint Vincent Court, while Los Angeles International Airport is some 19 miles southwest. Aon Center is also less than a mile from City National 2CAL, where CIM Group signed the largest downtown L.A. office lease of the year last week.

The Colliers team that represented and assembled the ownership group included Vice Chair Sean Fulp and Senior Vice President Adam Tischer. Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon represented Shorenstein, according to Fortune.

Largest transaction volume in the country

According to a CommercialEdge office report, the Los Angeles market registered the highest transaction volume across the U.S., amounting to $1.96 billion year-to-date through November. The metro was followed by Washington, D.C., and Manhattan, both almost reaching $1.9 billion.

Other significant deals in Los Angeles include Waterbridge Capital’s acquisition of Union Bank Plaza, a 675,945-square-foot tower. A fund managed by KBS sold the asset for $104 million. Earlier this month, Skanska sold 9000 Wilshire, a newly completed office property, to a Europe-based company for $71 million.