A 215,469 square foot office building is adding to the number of properties that have recently been made available for sale in downtown Los Angeles. According to industry sources, San Francisco-based investment firm The Swig Company has listed the office building located at 617 West 7th St.
The property is marketed by a JLL team that includes Andrew Harper, Jeffrey Bramson and Will Poulson. Pricing guidance for the site is undisclosed, and The Swig Company also declined to comment on the property listing. However, records show that Swig acquired the property in 2011 for $38.8 million, or about $180 per square foot, and in 2018, the company refinanced the building with a $25 million loan from HSBC Bank.
The 12-story property was initially developed in 1923, with renovations in 2001 and again in 2022, according to marketing materials.
At present, the property is 39 percent leased and is eligible for residential conversion through Los Angeles’ adaptive reuse ordinance. The property does hold several long term leases. Walgreens, for instance, occupying approximately 16,000 square feet, holds a lease until 2084. JLL suggests that part of the building could undergo residential conversion while these leases are in effect.
The property is situated within downtown Los Angeles’ Financial District. The highly walkable area is home to a number of retail and dining amenities as well as the 7th Street/Metro Center Station. Interstate 110 is also just a short commute away from the site.
The Greater Los Angeles area continues to see its office market struggle over the course of past several quarters. According to JLL’s most recent Los Angeles office market report, the fourth quarter saw slowed down leasing activity as more companies move to hybrid work models. However, overall sublease availability remained steady, and rents held firm throughout the year. Leasing activity decreased by over 15 percent from the previous quarter and was 35 percent below the historical five-year quarterly average, contributing to a quarter-over-quarter increase in the office vacancy rate to 26.5 percent.
