LOS ANGELES — Carolwood Equities LP, a real estate private equity firm based in Beverly Hills, Calif., has purchased Aon Center, a 62-story office tower in downtown Los Angeles. The 1.1 million-square-foot skyscraper is located at 707 Wilshire Blvd. in the city’s Financial District.
The $153.3 million sale of Aon Center represents the largest office sale in fourth-quarter 2023 in the Western United States, according to Newmark. The deal is also the largest purchase in downtown Los Angeles last year but sold for 45 percent less than its last purchase price, according to the Los Angeles Business Journal. The media outlet reports that the seller, San Francisco-based Shorenstein Properties, had previously purchased the tower in 2014 for $269 million.
Private investors Daniel Abrams and Adam Tischer are part of the new ownership group alongside Carolwood Equities. Tischer, vice president of Colliers’ Los Angeles office, was also part of the brokerage team for the buyer that also included Sean Fulp, vice chair of Colliers.
“The ownership group’s acquisition of the iconic Aon Center exemplifies the flow of private capital into Los Angeles, seizing the opportunity created by market dislocation,” says Fulp. “With a new low basis and a well-capitalized owner, Aon Center will be competitively positioned to attract and retain tenants who desire a well-amenitized skyline tower in the heart of downtown Los Angeles.”
Kevin Shannon, Ken White, Rob Hannan, Laura Stumm, Michael Moll, Chris Benton and Anthony Muhlstein of Newmark represented the seller in the transaction. Shannon says that the marketing of Aon Center involved 156 confidentiality agreements, 26 property tours and 18 offers.
Additionally, David Milestone of Newmark arranged an undisclosed amount of acquisition financing for the buyer.
Aon Center was 64 percent leased at the time of sale to tenants including the office tower’s namesake Aon and Morrison & Foerster. According to Newmark, no single tenant occupies more than 7 percent of the building’s net rentable area.
Constructed in 1974 and renovated in 2020, the property features a three-story lobby, fitness center, coffee shop, bank, electric vehicle charging stations and conference facilities. The tower has a high walkability rating as it provides proximity to amenities such as LA Live and Crypto.com Arena, the home arena of the Los Angeles Lakers.
Aon Center is the third tallest building in Los Angeles and the fourth tallest in California, according to Newmark.
— John Nelson