Dealmaker: Newmark Arranges $153.5M Office Building Sale in Los Angeles

(Image courtesy of Newmark)

Newmark, New York, arranged the sale of a 1.1 million-square-foot office building in downtown Los Angeles for $153.5 million to Carolwood Equities.

Newmark said this was the largest office sale in the Western U.S. in fourth-quarter 2023.

Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairmen Ken White, Rob Hannan, Laura Stumm and Michael Moll, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented the undisclosed seller. Newmark Vice Chairman David Milestone facilitated debt financing.

The complex is called the Aon Center, and was extensively renovated in 2020.

The 62-story Aon Center was 64% leased at the time of sale to a diverse roster of tenants, including Aon and Morrison & Foerster. No single tenant occupies more than 7% of the building (net rentable area), providing diversity of income.

“As the exclusive sales broker, Newmark ran a broad global marketing process for Aon Center, which included exposure to more than 119,000 principals, generating 156 confidentiality agreements, 26 property tours and 18 offers,” Shannon said.