In a turn of events, the office tower located at 444 S. Flower St. in downtown Los Angeles is poised for a turnaround. Oaktree Capital Management, the current owner of the 48-story building, has successfully secured a loan extension worth approximately $259 million from American General Life Insurance, according to a report from Commercial Cafe.
Oaktree has enlisted the expertise of industry professionals Hayley Blockley, Josh Wrobel, and Peter Hajimihalis from JLL to expedite the leasing process. CBRE has also been appointed to manage the property, which is known as FourFortyFour. Since assuming ownership in January, Oaktree has already leased 90,000 square feet of space.
Formerly under the ownership of real estate investment firm Coretrust Capital Partners, FourFortyFour was acquired in 2016 for a total of $336 million. The 914,343 square foot Bunker Hill office space underwent a refinancing process two years later, securing a $209.6 million senior loan from AIG and a $64.7 million three-year mezzanine loan from Oaktree, carrying an interest rate of 8.6 percent. However, by the beginning of 2023, Coretrust found itself burdened with a $110 million outstanding loan balance, with 23 percent of the property’s total space still unoccupied.
Oaktree Capital Management’s recent success in obtaining a loan extension of $259 million from American General Life Insurance signifies a significant milestone for the office tower at 444 S. Flower St. This substantial injection of funds provides a solid financial foundation for the property’s resurgence. The extension not only alleviates financial pressure but also enables Oaktree to implement strategic improvements and initiatives aimed at attracting tenants and enhancing overall leasing prospects.
