Newmark Arranges Sale of $290 Million Loan Secured by Wells Fargo Center South in Downtown Los Angeles

Newmark announced Oct. 19 that it has completed the sale of a $290 million loan secured by Wells Fargo Center South, a 45-story, 1.16 million-square-foot Class A office tower in the Bunker Hill district of Downtown Los Angeles. The buyer, New Age 355, LLC, is an affiliate of Kam Sang Company, Inc.

Newmark Co-Head, U.S. Capital Markets Kevin Shannon and Vice Chairmen Ken White, Laura Stumm, Rob Hannan and Michael Moll represented the seller.

Wells Fargo Center South Loan Sale Details

The loan is collateralized by the fee simple interest in the tower at 355 S. Grand Ave. New Age 355, LLC acquired the debt at a significant discount to its face value. The loan traded for approximately $115 million, a discount of about $175 million, or roughly 60%, to the $290 million loan amount. The price implies a basis of about $99 per square foot on the tower's roughly 1.159 million square feet.

The seller was a lender consortium. When the lender-facilitated sale was marketed in December, offers were expected at around $157 million, or approximately $130 per square foot.

Because the transaction involves the purchase of a loan, it conveys control of the collateral through the debt rather than constituting a completed fee-simple sale of the property. The buyer could later acquire the real estate through foreclosure, debt restructuring or another process.

Property Profile: Bunker Hill Office Tower

Wells Fargo Center South, also known as the South Tower of Wells Fargo Center, was designed by Skidmore, Owings & Merrill. The tower offers direct access to the recently renovated HALO amenity center, expansive views and efficient floor plates. It is located near major cultural institutions, public transportation and regional transportation networks.

At the time of the loan sale, the property was approximately 42% leased, with a diversified roster of government, legal, insurance and financial services tenants. The property also offers building-top signage and naming-rights opportunities, which Newmark described as increasingly attractive to corporate users seeking visibility in the Los Angeles market.

Newmark Comments on Downtown Los Angeles Investor Demand

"This transaction reflects the growing pool of investors and owner-users seeking opportunities in institutional-quality assets across Downtown Los Angeles," Shannon said. "As pricing continues to adjust, buyers are gaining access to irreplaceable real estate at a compelling basis relative to replacement cost. We are seeing increasing conviction from groups that recognize the long-term value of premier office properties and are willing to invest in their next chapter."

According to Newmark, the transaction is the third ownership or loan sale in 2026 to date involving a Downtown Los Angeles office tower of more than 40 stories. Two of the three involved buyers planning to occupy a portion of their buildings while leasing the remaining space to tenants.

Owner-Users and the Los Angeles Office Market

Newmark Research reported that owner-users accounted for 59% of Los Angeles office sales exceeding $25 million year-to-date through the third quarter, more than double the average share recorded in 2024 and 2025. Some of these buyers are pursuing a hybrid strategy, occupying part of an acquired building while leasing the remainder to third-party tenants. Newmark said user sales in which the buyer occupies most of a building are helping remove office inventory from the competitive market, particularly in Downtown Los Angeles, where owner-user acquisitions have become an increasingly important driver of sales activity.

Broader market conditions remain mixed. Los Angeles' direct office vacancy rate was 16.4% in the third quarter of 2026, down from 16.5% in the prior quarter, while total vacancy including sublease space was 17.7%. Quarterly leasing totaled approximately 3.21 million square feet, down 37.2% year over year. New deliveries totaled only 33,000 square feet in the quarter, and the construction pipeline stood at approximately 1.65 million square feet. CBRE reported that owner-user purchases of high-vacancy properties helped contract the market's inventory in the third quarter.

Outlook for the Tower

At roughly 42% leased, the tower's new debt owner faces leasing, capital improvement and repositioning decisions. The acquisition basis of about $99 per square foot is below the roughly $130 per square foot that offers were expected to reach when the sale was marketed, though the low basis does not by itself resolve the building's vacancy.

Newmark Group, Inc. (Nasdaq: NMRK) generated revenues of more than $3.6 billion for the twelve months ended June 30, 2026, and operated from over 195 offices with more than 10,000 professionals across four continents as of that date.

Sources

Newmark press release: Newmark Arranges Discounted Sale of $290 Million Loan Secured by Wells Fargo Center South in Downtown Los Angeles