Oaktree closes loan extension at Downtown LA office tower

LOS ANGELES, May 24, 2023 – Funds managed by Oaktree Capital Management, L.P. (“Oaktree”) announced today that it has secured a loan extension at FourFortyFour South Flower, a landmark, 48-story, 914,000-square-foot office tower in the heart of downtown Los Angeles. This loan paves the pathway to fund competitive new leases, spec suites and amenities to the building. The lender provided the extension which will contribute to the funding of future projects at the building.

Following a UCC foreclosure in January, Oaktree took ownership of the building. JLL’s Hayley Blockley, Josh Wrobel and Peter Hajimihalis were retained to lease the property and CBRE was hired to run property management. Since the acquisition, the new ownership team has secured leases totalling 90,000 square feet.

“Oaktree has been a constant presence in DTLA for nearly three decades, and is excited to invest directly into an office project that is in our backyard,.” said Justin Guichard, managing director and Co-portfolio manager of Oaktree. “The building’s team now has the resources to more aggressively secure new tenants, continue our lease-up trajectory, and look for ways to enhance the experience for current and prospective tenants. We know that a return to office will drive a flight to quality.”

The new ownership plans to continue investment in making FourFortyFour a healthy building for tenants and for the environment.

Hayley Blockley JLL Managing Director points out that “FourFortyFour South Flower is one of the first multi-tenant commercial office buildings in DTLA to achieve a Carbon Neutral designation. The building is a certified WELL-Building for Health and Safety, rated LEED Gold by the USGBC, star-rated by the Global Biorisk Advisory Council, Energy Star Certified, earned a BOMA Earth Award and has UL’s Tier 2 and Tier 3 Healthy Building Verification for Indoor Environment.”

FourFortyFour South Flower is a striking landmark office tower designed by AC Martin. In contrast to the siloed high-rises surrounding, the tower features an open-air atrium and several levels of landscaped terraces, some of which are home to world-renowned public art. Three tenants within the building have carved out the windows on the corner of 5th and Flower; creating indoor/outdoor balconies 30-floors above the street. As downtown office employers lure remote workers back to the office, onsite amenities such as Equinox Fitness, Mendocino Farms, Starbucks, and a hair and nail salon provide a break for office dwellers returning from so long at home. A shared conference and event center also intrigues relocating companies no longer interested in keeping large conference facilities within their premises.

“While the downtown Los Angeles office market continues to evolve, the majority of leasing interest comes from companies looking specifically for an activated, amenitized property like FourFortyFour South Flower to bring workers back in,” said Blockley. “We are excited about the loan extension to focus on fresh, modern spec suites accommodating companies with an immediate need. Our recent lease signings, tours and overall interest is proof that this building will remain a top overall option for companies in the heart of LA.”

Oaktree is a leader among global investment managers specializing in alternative investments, with $172 billion in assets under management as of March 31, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,100 employees and offices in 20 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.