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Downtown's Wedbush Center has lost about 69% of its value in seven years, according to an August appraisal.
The 21-story office tower owned by private equity firm Cerberus Capital Management was appraised at $60.5M, according to an alert from Morningstar Credit.
It's a stark drop from the $197.5M valuation for 1000 Wilshire Blvd. in 2018 when a $128.4M CMBS loan was issued.
That year, Cerberus bought the 475K SF office property for $196M from Lincoln Property Co.
The debt was transferred to special servicing after Cerberus missed its March maturity date. Occupancy at the Wedbush Center dropped to 67% at the end of last year, down from 87% at loan underwriting.
Another occupancy drop is expected at the end of this year. The building's namesake tenant, Wedbush Securities, is scheduled to move out of 100K SF at the building when its lease expires in December. It is moving into 20K SF in Pasadena.
A study conducted by an arm of the Central City Association and published this week found that the drop in office building valuations in Downtown alone posed a $69.5B loss in assessed property value and $353M in potential lost property tax revenue over the next decade.
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