One of Bunker Hill’s signature office towers may be about to trade at what looks like fire-sale pricing, as industry sources say Eastdil Secured has zeroed in on The 601W Companies to buy the mortgage tied to Brookfield’s Wells Fargo Center - North Tower. The approach reportedly pegs the 54-story property and its attached retail at roughly $180 million, a sharp cut from the outstanding loan balance. Negotiations are still in motion, and none of the parties have confirmed that a deal is done.
Deal terms and the building
Eastdil is marketing the mortgage on 333 South Grand Avenue, and insiders told reporters that 601W is the frontrunner to pick it up for about $180 million, or roughly $130 per rentable square foot. The North Tower spans about 1.4 million square feet across 54 stories, and the offering includes a three-story retail atrium branded as the Halo. These specifics were reported by The Real Deal.
Brookfield, Oaktree, and the creditor picture
The mortgage sits within a layered capital stack that also includes mezzanine debt, adding complexity for lenders and investors if the note changes hands. Separately, Brookfield said in October that it has agreed to acquire the remaining interest in Oaktree Capital Management, the credit manager that holds pieces of the financing, in a transaction the company expects to close in early 2026. Brookfield’s press release and securities filings lay out the proposed acquisition and the anticipated timing. Brookfield/GlobeNewswire.
Loan math and occupancy
The North Tower mortgage is reportedly in default, with an outstanding balance of about $506 million, while the office portion is only around 61 percent leased and the Halo retail roughly 35 percent occupied. That gap between what is owed and the rumored $180 million note price is why lenders would be staring at sizable losses if the loan trades near that level, according to reporting. The Real Deal also noted that Eastdil, Brookfield and 601W did not immediately respond to requests for comment.
What it could mean for downtown Los Angeles
A transaction at this pricing would spotlight how far values for big downtown Los Angeles offices have slid, and how both lenders and buyers are now underwriting lower rents and thinner occupancy. Brookfield has sold other DTLA properties at discounts in recent months, a pattern highlighted in national coverage of the market. Bloomberg examined those earlier discounted sales and the broader pullback in downtown office values. For whichever buyer ultimately controls the note, repositioning a 1.4 million square foot tower and breathing life into the Halo retail will likely be an expensive, long-haul effort.
