Local commercial real estate investor Jade Enterprises put its 24-story office tower at 660 S. Figueroa St. up for sale after 10 years of ownership.

The office building is 37% leased now, but 12% of that is set to expire in the next three years, The Real Deal reported. The roughly 285K SF tower is being marketed by a Newmark team led by Kevin Shannon.

Jade Enteprises bought the tower in 2014 for $80M and has spent $12M on upgrades and tenant improvements, according to public records. The tower backs $39M in debt and Jade is offering a deal to assume the loan as part of the sale. The loan is set to mature in February 2027, according to TRD.

TRD estimates that a sale will happen at a hefty discount to replacement cost, which is estimated to be about $254M, or $900 per SF. It also seems likely that the building will trade for a good deal less than what Jade Enterprises paid.

Earlier this month, The Swig Co. sold an office property at 617 W. Seventh St. for $20.5M, a 47% discount from its 2011 sale price, TRD previously reported. In March 2023, KBS sold Union Bank Plaza at a roughly 50% loss from its 2010 price when it sold for $104M.

Office prices are dropping, and each sale seems to indicate that more discounts are to come.

"2024 will be the year that more owners decide to sell their properties at a loss or realize that they need to convert or redevelop their properties to non-office use," according to a first-quarter 2024 report from Savills.