LA County To Buy Gas Company Tower For A 68% Discount

The Gas Company Tower In Downtown Los Angeles

The Gas Company Tower, in receivership after a Brookfield entity turned the keys back to its lenders last year, will have a new owner: the County of Los Angeles.

The Los Angeles County Board of Supervisors voted Wednesday to approve the purchase of the Gas Company Tower for $200M, a more than 68% discount from the $632M the tower was appraised for in 2020, the Los Angeles Times reported.

It's also a drop from the $270M the tower was appraised at in summer 2023.

The county is buying the tower to make it a centralized hub for services and thousands of county workers. Those services and employees are presently located in multiple buildings that need costly seismic retrofits.

Relocating to the building will save the county "hundreds of millions of dollars" rather than performing the needed upgrades, according to the county's Chief Executive Fesia Davenport, the LA Times reported.

The Gas Company Tower has lost a number of larger tenants, including its namesake, which announced it will move into nearly 200K SF at Two California Plaza on Bunker Hill. The move-in is expected by spring 2026, according to the LA Times.

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