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Ivanhoé Cambridge is looking to cut loose the PacMutual building in Downtown Los Angeles, and it is willing to take quite a haircut to do so.
The company, a subsidiary of the investor that manages Québec, Canada’s pension and insurance programs, listed the property for $100M, Commercial Observer reported. That is half of what Ivanhoé Cambridge paid for the property in 2015. At $430 per SF, the 2015 price tag set the record for a pure office building in Downtown at the time, the Los Angeles Times reported.
The PacMutual building at 523 West Sixth St. sits right across the street from Pershing Square. It measures 464K SF across three buildings built between 1908 and 1928 and is a city historic-cultural monument. Occupancy at the building was unclear, but total vacancy in Downtown is around 27.8%, according to Avison Young.
There are at least five other large office properties for sale in Downtown right now, according to a fourth-quarter report from Avison Young. Shorenstein’s Aon Center is on the market for a $48.5M discount. CoreTrust Capital Partners’ 444 South Flower St., on which lenders initiated foreclosure in September, is listed as in the marketing phase.
Union Bank Plaza has had its closing date delayed numerous times since mid-2022 following an earlier — and $10M higher — bid falling through. CIM Group’s 801 South Grand Ave. is also for sale, as it has been since August. Brookfield listed a 52-story office tower unpriced in September that is also awaiting a buyer.
Pension funds began making moves to sell off some of their office properties late last year, marking a big shift for the institutional investors that had long favored the property type.
CORRECTION, JAN. 25, 8:24 A.M. PT: A previous version of this story incorrectly identified the owner of 444 South Flower St. The story has been updated.
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