Discounted DTLA office loan sale signals a new market phase
Key Takeaway: Newmark arranged the discounted sale of a $290 million loan on Downtown LA’s Wells Fargo Center South to a Kam Sang Company affiliate, as distressed office trades reprice Bunker Hill.
Newmark has arranged the discounted sale of a $290 million loan secured by Wells Fargo Center South, a 45-storey office tower in Downtown Los Angeles, in a deal the brokerage says reflects a growing pool of buyers hunting for distressed institutional real estate.
The purchaser is New Age 355, LLC, an affiliate of Kam Sang Company, Inc. The seller was not named in the release; The Real Deal reported the seller was a consortium of lenders.
The deal
The loan is secured by Wells Fargo Center South, a 45-storey, 1.16 million sq ft tower at 355 South Grand Avenue in Downtown Los Angeles, according to Newmark. Kevin Shannon, the brokerage’s co-head of U.S. capital markets, led the assignment, with vice chairmen Ken White, Laura Stumm, Rob Hannan and Michael Moll also representing the seller.
“This transaction reflects the growing pool of investors and owner-users seeking opportunities in institutional-quality assets across Downtown Los Angeles,” said Shannon. “As pricing continues to adjust, buyers are gaining access to irreplaceable real estate at a compelling basis relative to replacement cost.”
The sale is the latest distressed Downtown Los Angeles trade connected to Brookfield, the commercial giant that once owned the tower, according to The Real Deal.
A steep discount
The note changed hands for about $115 million, or about $100 per sq ft, per a person familiar with the deal, The Real Deal reported. That is far below the stated $290 million loan face value and the roughly $157 million in anticipated offers previously reported by The Real Deal when the tower was being marketed.
The tower was worth $450 million nine years ago, according to The Real Deal. A prior $130 million Carolwood deal for the tower fell through, and a second deal also collapsed, The Real Deal reported.
The distress extends across Bunker Hill. The tower’s sister, the North Tower, sold to 601W earlier this year after an approximately $500 million default, according to The Real Deal. Bank of America Plaza went to Capital Group, a tenant, for $210 million, about $150 per sq ft, after its previous owner defaulted on a loan of around $400 million, The Real Deal reported.
A new phase for the market
Newmark Research figures cited in the announcement show owner-users accounted for 59% of Los Angeles office sales exceeding $25 million year-to-date through the third quarter, more than double the 2024-2025 average share. Shannon said in the release that buyers are showing increasing conviction in the long-term value of premier office properties.
One figure remains unresolved. Newmark states the loan at $290 million, while the L.A. Business Journal headlines the transaction as a discounted $250 million loan. The discrepancy has not been explained.
Key Story Metrics
| Figure | Reported Status |
|---|---|
| Loan face value | $290 million (Newmark, 19 Oct 2026) |
| Loan face value, alternate report | $250 million (L.A. Business Journal, 20 Oct 2026) |
| Note sale price | About $115 million, about $100 per sq ft (The Real Deal, per a person familiar) |
| Anticipated offer level | About $157 million, about $130 per sq ft (The Real Deal) |
| Tower value nine years ago | $450 million (The Real Deal) |
| Bank of America Plaza sale | $210 million, about $150 per sq ft, after a $400 million default (The Real Deal) |
| Owner-user share of LA office sales over $25M, YTD through Q3 | 59% (Newmark Research) |
| Leased at time of sale | About 42% (The Real Deal; L.A. Business Journal) |
| Tower size | 45 storeys, 1.16 million sq ft (Newmark) |
✓ Verified
Newmark announced on 19 October 2026 that it arranged the discounted sale of a $290 million loan secured by Wells Fargo Center South, a 45-storey, 1.16 million sq ft Class A tower at 355 South Grand Avenue, Downtown Los Angeles. The purchaser is New Age 355, LLC, an affiliate of Kam Sang Company Kevin Shannon, Newmark’s co-head of U.S. capital markets, led the assignment with Ken White, Laura Stumm, Rob Hannan and Michael Moll. The Real Deal reported the note sold for about $115 million (about $100 per sq ft) per a person familiar, and that the seller was a consortium of lenders.
⚠ Still needs confirmation
The Real Deal’s $115 million sale price comes from a single person familiar with the deal. The seller’s identity rests on The Real Deal’s reporting that it was a consortium of lenders; Newmark did not name the seller. The loan’s face value is disputed: Newmark states $290 million while the L.A. Business Journal headlines a $250 million loan.
Editor’s note: This article is based on Newmark’s sale announcement and independent reporting from The Real Deal and the L.A. Business Journal. Figures are shown with their sources; the loan’s face value is disputed between sources.
