JLL closes $200M sale of iconic downtown Los Angeles office tower

LOS ANGELES, Dec. 10, 2024 – JLL Capital Markets announced today that it has completed the $200 million sale of The Gas Company Tower, a 1.3 million-square-foot, iconic trophy office tower located in the heart of downtown Los Angeles (DTLA), California.

JLL marketed the asset on behalf of their client for a CMBS trust that previously held the mortgage. Los Angeles County emerged as the buyer after a comprehensive marketing process, which generated offers from various investors, including users, institutions and private buyers.

The Gas Company Tower is located at 555 W Fifth St. in the highly sought after Bunker Hill submarket of Los Angeles. The 1.39-acre site is surrounded by distinguished office buildings and offers walkable access to a wide array of dining, entertainment and cultural destinations. Additionally, The Gas Company Tower boasts a Transit Score® of 100, given its location just one block from the Pershing Square Metro station providing public transit to the greater Los Angeles market.

Designed by the world-renowned architect Skidmore, Owings and Merrill, the Gas Company Tower is a trophy quality building standing 54 stories tall. Most recently renovated in 2018, the LEED Gold-certified tower offers efficient 27,000-square-foot floorplates, an open modern lobby and a five-level underground parking garage. The Gas Company Tower is 53% occupied to a diverse mix of predominately credit tenants, including Southern California Gas Company, Deloitte, B. Riley, Knoll, Arent Fox LLP and Latham & Walkins LLP.

JLL’s Capital Markets Investment Sales and Advisory team representing the client was led by Senior Managing Directors Jeffrey Bramson, Sean Ryan and Tom Hall, Managing Director Andrew Harper and Director Will Poulsen.

“The Gas Company Tower presented a tremendous opportunity to purchase a top asset in DTLA at pricing not seen in nearly 20 years,” said Bramson. “This transaction represents an important milestone in the DTLA office market as we are witnessing a reset of the market and anticipate increased transaction activity and pricing stability in 2025.”

“The Los Angeles market continues to see significant interest from users and tenants seeking to purchase buildings for their own use. These buyers see good relative value given the recent reset in office building valuations,” added Harper.

JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources, please visit JLL’s newsroom.

Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.