Transaction Marks Largest Q4 2023 Office Sale in Western U.S.
LOS ANGELES , Dec. 29, 2023 /PRNewswire/ — Newmark Group, Inc. (Nasdaq: NMRK) (“Newmark”1 or “the Company”), a leading commercial real estate adviser and service provider to large institutional investors, global corporations, and other owners and occupiers, announces it has arranged the sale of Aon Center, a 62-story trophy Class A office tower located in the heart of the Financial District in Downtown Los Angeles. The asset sold to Carolwood Equities for $153.5 million, marketing the largest2 Q4 2023 office sale in Western U.S.3.
Image courtesy of Newmark
Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairmen Ken White, Rob Hannan, Laura Stumm and Michael Moll, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented the undisclosed seller. Newmark Vice Chairman David Milestone facilitated debt financing. The team was involved in two of the three biggest4 office sales that occurred in Los Angeles County this year.
“As the exclusive sales broker, Newmark ran a broad global marketing process for Aon Center, which included exposure to more than 119,000 principals, generating 156 confidentiality agreements, 26 property tours and 18 offers,” said Shannon. “Having sold four of the last five sales in the market, including Union Bank Tower, 801 Grand, 444 Flower and now Aon Center, our team has an unmatched pulse on the unique audience of predominately family office buyers for Downtown Los Angeles. The buyer of Aon Center actually was a backup buyer for our 801 Grand process earlier in the year.”
Located at 707 Wilshire Boulevard, Aon Center is comprised of over 1.1 million square feet, offering sprawling views of the Los Angeles basin. Extensively renovated in 2020, the property features a three-story architectural lobby and a variety of tenant amenities, including training rooms, a fitness center, an on-site coffee shop, a bank and EV charging stations. As the third tallest building in Los Angeles and the fourth tallest in California, the 62-story Aon Center is instantly recognizable as one of the iconic landmarks of the Downtown Los Angeles skyline.
Aon Center was 64% leased at the time of sale to a diverse roster of tenants with strong national and regional credit profiles, including Aon and Morrison & Foerster. No single tenant occupies more than 7% of the building (net rentable area), providing an investor diversity of income.
Situated in Downtown’s Financial District, the property boasts a walk score of 99 and a transit score of 100. Aon Center provides immediate Metro access and is surrounded by world-class walkable amenities such as Crypto.com Arena and LA Live.
About NewmarkNewmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of September 30, 2023, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about NewmarkStatements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
1 Dba Newmark Knight Frank in California
2 By Sales Price, according to CoStar data
3 According to CoStar data
4 By Sales Price, according to CoStar data
SOURCE Newmark Group, Inc.
