In another sign of the struggles faced by office landlords in downtown Los Angeles, a Brookfield-run entity has sold the 777 Tower for $145 million, roughly half the remaining debt tied to the property.

The 52-story, 1 million-square-foot office building, designed by late architect Cesar Pelli, was part of Brookfield’s expansive downtown LA portfolio that has seen a dramatic decline in value since the pandemic.

According to reports, South Korea-based Consus Asset Management is the buyer of the property, located at 777 South Figueroa Street. This sale comes after Brookfield defaulted on the building last year, as part of a larger portfolio that has experienced a shocking devaluation.

Other troubled Brookfield assets in the downtown area include the Gas Company Tower, which was placed in receivership and saw its value plummet 57%, and EY Plaza, which fell more than 50% in value over three years, dropping below its loan balance.

Brookfield is not alone in facing the challenges of the downtown LA office market. A year ago, KBS sold Union Bank Plaza for less than half its expected value, and in December, the city’s third-tallest building traded at a 45% discount to its previous sale price.

The $145 million sale price for the 777 Tower represents roughly half the remaining debt on the property, highlighting the significant losses office landlords have had to absorb in this market downturn.