The Los Angeles office sector has seen drastic value declines and increasing vacancy rates. The Wedbush Center's value dropped from $197.5 million to $60.5 million in seven years. At 1000 Wilshire Boulevard, occupancy fell to 67 percent while its backing debt entered special servicing. The Santa Monica Clock Tower's value decreased from $49 million to $27.4 million over a decade. Its occupancy also plummeted to 43 percent. The overall trend indicates financial strain and possible further declines in the office market.
The 21-story Wedbush Center recently appraised at $60.5 million, a 69 percent decrease in seven years, leaving it worth less than $128 million debt connected to it.
Occupancy at the 475,000-square-foot office building at 1000 Wilshire Boulevard slumped to 67 percent, and its debt landed in special servicing after missing a maturity date.
The Santa Monica Clock Tower appraised at $27.4 million compared to $49 million at loan issuance, a 44 percent drop in around a decade, after missing maturity dates.
Occupancy at the century-old, 12-story Art Deco office property at 225 Santa Monica Boulevard plummeted to 43 percent in March, far from 100 percent at loan underwriting.
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