Aon Center, a 1.1-million-square-foot office tower in downtown, has sold for $148 million in what is known to be the biggest downtown office sale of 2023.

Beverly Hills-based real estate private equity firm Carolwood LP acquired the building, located at 707 Wilshire Blvd., along with private investors Daniel Abrams and Adam Tischer, who was also part of the Colliers brokerage team that arranged the sale. 

“This transaction exemplifies Colliers’ entrepreneurial spirit by matching the right capital with the right opportunity, ultimately driving a successful client outcome,” Ricardo Pacheco, managing director of brokerage for Colliers’ Los Angeles offices, said.

However, despite the transaction marking the largest post-pandemic office sale downtown and the only tower of over 1 million square feet to trade since 2020, according to Colliers, the property sold for 45% less than its last purchase price. 

Shorenstein, the seller, had previously acquired the building for $269 million back in 2014. The massive discount is evidence of the historic decline in demand for traditional office real estate overall and sinking office values, particularly witnessed downtown. Newmark Group Inc. represented Shorenstein.

“Navigating today’s challenging capital markets landscape requires creativity, tenacity and a sophisticated level of advisory services to execute effectively,” Pacheco said.

Colliers brokers Sean Fulp, vice chair of West region capital markets, and Tischer, a senior vice president, assembled the ownership group and provided buyer advisory services throughout the acquisition via a lender-facilitated sale.

“The ownership group’s acquisition of the iconic Aon Center exemplifies the flow of private capital into Los Angeles, seizing the opportunity created by market dislocation,” Fulp said. “With a new low basis and a well-capitalized owner, Aon Center will be competitively positioned to attract and retain tenants who desire a well-amenitized skyline tower in the heart of downtown Los Angeles.”

Aon Center is a 62-story, 858-foot-tall slender skyscraper that first debuted in 1973. Designed by American architect Charles Luckman, it is the third tallest building in Los Angeles and the fourth tallest in California. The building is named after Aon Corp., its anchor tenant. Its name is displayed at the top in red.