DTLA Holdings Group has completed the acquisition of the iconic 777 Figueroa Street office tower in Downtown Los Angeles's Financial District for a staggering $145 million. The 450,000 square-foot, 35-story skyscraper, a prominent fixture in the downtown skyline since its construction in 1989, was purchased from Figueroa Tower LLC. This high-profile transaction underscores a renewed confidence in the future of Class A office space in the heart of Los Angeles, particularly for properties that are well-maintained and strategically located.
This acquisition is a bold move by DTLA Holdings Group, signaling their belief that the downtown office market is poised for a significant rebound. While specific plans for the tower have not yet been fully disclosed, industry insiders anticipate a substantial capital improvement program focused on enhancing tenant experience, modernizing building infrastructure, and potentially reconfiguring some floor plates to meet the demands of contemporary businesses. The building's prime location, offering panoramic city views and immediate access to major corporate headquarters and cultural institutions, makes it a highly desirable asset.
The sale price, approximately $322 per square foot, reflects a strategic investment in a trophy asset that has weathered various market cycles. Figueroa Tower LLC, who had owned the property for over a decade, decided to divest as part of a broader portfolio optimization strategy. This deal is expected to be a bellwether for other large-scale office transactions in DTLA, potentially encouraging further investment and development activity in the area as companies reassess their long-term office strategies post-pandemic.
