Bank of America Plaza changes hands following months in foreclosure
A well-known high-rise in downtown Los Angeles has been sold out of foreclosure roughly a year after its owner defaulted on the property’s loan, highlighting the continued financial strain across one of the country’s largest office markets.
New York City-based investment firm 601West Cos. has acquired the 1.4 million-square-foot Bank of America Plaza through receivership for an undisclosed amount, according to sources familiar with the transaction.
The tower was previously owned by global real estate giant Brookfield Properties. The asset was transferred to special servicing in mid-2024 after its $400 million loan reached maturity.
Downtown Los Angeles continues to face significant challenges, including weak tenant demand, elevated vacancy levels and declining rents. Landlords have increasingly relied on generous concessions to attract tenants. Still, despite deeply discounted pricing and ongoing uncertainty, an increase in deal activity and a handful of stronger transactions are beginning to signal early signs of returning investor interest, according to CoStar research.
Over the past year, 601West has been actively purchasing prominent office assets at reduced prices. Recent acquisitions include Chicago’s 16-story 525 Van Buren St. and New York City’s 22-story 205 E. 42nd St., both completed in November. CoStar data shows the firm currently owns 43 properties nationwide, including 28 office buildings.
The Bank of America Plaza transaction has helped drive a 25% year-over-year increase in office sales volume across the greater Los Angeles area.
Downtown office distress
The 55-story tower is currently about 51% leased, with remaining tenants including The Capital Group Cos., Bank of America and Allied Insurance Services.
The property’s loan defaulted upon maturity in September 2024, and the special servicing role was transferred to Mount Street in November of that year. In April 2025, Mount Street formally launched foreclosure proceedings. A receiver was appointed the following month to market both the building and the associated loan.
Brookfield’s broader downtown Los Angeles office portfolio has also faced mounting pressure. In early 2023, the firm’s Downtown LA Office Fund defaulted on more than $1.1 billion in loans tied to the Gas Company Tower and 777 Tower. Both properties entered receivership after Brookfield opted not to continue servicing the debt.
Since then, those towers have been sold to new owners. In June, Brookfield sold the 52-story Figueroa at Wilshire building to Uncommon Developers for $210 million, or approximately $201 per square foot, marking one of Los Angeles’ largest real estate deals of 2025. Earlier, in March, the 777 Tower was acquired by Consus Asset Management for about $145 million — less than half of its $319 million outstanding debt — underscoring the magnitude of the office market’s valuation reset.
Despite the divestments, Brookfield remains a significant downtown Los Angeles property owner, holding roughly 785 multifamily units and approximately 5.7 million square feet of office space in the area, some of which is currently being marketed for sale.
In addition, Brookfield is seeking a buyer for FIGat7th, a 330,000-square-foot retail center located at 735 S. Figueroa St. The property is anchored by major retailers including Nordstrom Rack, Sephora, Target and Zara and is backed by a $59 million loan from MetLife that matures later this year.
Source: Original reporting by Brannon Boswell, CoStar News.
