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Jamison Properties is seeking to sell a 21-story office tower with at least $35M of debt attached to it.
Jamison just a few months ago defaulted on the $35M CMBS loan tied to the property, CoStar reported.
CBRE is marketing the property, but a price tag wasn't disclosed. The sale would also include a neighboring parking garage at 616 S. Figueroa St.
Jamison bought the property in 2003 for $26.5M. An appraisal on the building reported in May by Morningstar Credit valued the building at $40.5M.That represents a 40% drop from the $68M value the property had at loan issuance in 2014. It was set to mature in November 2024 and moved to special servicing that month.
Occupancy at the Los Angeles office building was last reported at 36% in December, down from 50% the year prior and 70% at issuance, according to Morningstar.
With leases among some tenants slated to expire soon, the property's vacancy rate is expected to increase.
The availability rate in Downtown LA in the second quarter was 33.5%, according to Savills.
This building isn't the only one presenting challenges for Jamison. The company is staring down more than $200M in debt backed by 2.4M SF across seven of its buildings.
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