Manulife Selling TCW Tower To LA Water And Power For $93M

The Owners Of Tcw Tower (Center) Are Selling The Tower To Ladwp.

Singapore-listed Manulife US REIT is selling Downtown's TCW Tower to the Los Angeles Department of Water and Power for $92.5M.

The transaction was announced through a divestment notice from Manulife. An entity controlled by the REIT, Hancock S-REIT LA Corp, is the official seller of the 35-story TCW Tower.

As of the end of 2025, the tower was roughly 46% occupied and the weighted average lease expiration was just under five years, according to the notice.

The price tag for the 719K SF office tower at 865 S. Figueroa St. works out to about $129 per SF. The Real Deal first reported the pending sale.

Manulife plans to use proceeds from the sale to make an early repayment of an outstanding loan due in 2026 and partial repayment of loans due in 2027. The sale will result in a $10M net loss on the building, according to the notice.

Earlier this month, the REIT received third-party appraisal of the building that placed its value at roughly $98.1M, according to a notice from Manulife.

The sale hasn't yet closed. Because the buyer is technically the city, the sale is subject to approval by the city council as well as the board of water and power commissioners and will be the subject of public meetings, according to the notice. If all goes as planned, Manulife estimates the sale will close in May.

The TCW Tower was one of seven office properties in Manulife's portfolio. Last year, Manulife sold one office property in Secaucus, New Jersey, and one in Atlanta, which together generated net sale proceeds of $163.6M, according to the company's 2025 year-end financial disclosures.

The company last year received approval from shareholders to explore assets in nonoffice sectors including industrial and retail as a way to stave off bankruptcy.

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