Non-Performing Note Sale: 150,000+ SF Office Building | Los Angeles

Cushman & Wakefield is offering the opportunity to purchase a non-performing senior mortgage (the “Loan”) secured by 626 Wilshire Boulevard, a 153,758-square-foot, prominent 12-story office tower (“626 Wilshire” or the “Property”) located in Downtown Los Angeles’ Financial District.  The loan, with a current basis of approximately $22 million ($141 PSF), matured in July 2025 and is now in maturity default. The lender's representatives have taken prudent steps to protect its interests.   The loan is to be sold through a public auction conducted during the following dates: 4/13/2026 – 4/15/2026.

Investment Highlights

Stable In-Place Cash Flow with Significant Upside
The Property is currently leased to a diversified rent roll of 26 tenants with a weighted average lease term (WALT) of 4.9 years. In-place NOI of approximately $1.5 million at 56% occupancy presents a compelling opportunity for meaningful value creation through lease-up.

Data Center Tenancy with Long-Term Commitment Through 2038
The Property’s anchor tenant KDDI/Telehouse occupies critical data center infrastructure at the Property under a long-term lease through 2038 – the company is a $40 billion global enterprise and top 10 data center operator worldwide. The Property’s direct fiber connectivity to One Wilshire, the western U.S. gateway for trans-Pacific data traffic handling roughly one-third of all U.S. – Asia internet connectivity, positions 626 Wilshire as a highly strategic node within global digital infrastructure.

Recent Leasing Demonstrates Market Momentum
Recent tenant commitments at the Property totaling approximately 15,000 square feet from firms in the legal, engineering, architecture, and energy sectors highlight the continued resurgence of the Downtown Los Angeles office market. Over $5 billion of transformational upcoming events and infrastructure investments including the 2026 World Cup, the 2028 Olympic Games, and the modernization of the Los Angeles Convention Center are expected to further accelerate demand across hospitality, multifamily, retail, and office sectors.

Premier Location in the Heart of Los Angeles’ Financial District 
Located along Wilshire Boulevard in the heart of Downtown Los Angeles’ Financial District, the Property boasts a 99 Walk Score and a 100 Transit Score, with immediate access to many of the city’s premier dining and entertainment destinations. The Property is one block from the 7th Street/Metro Center Station and offers convenient access to the 110, 10, and 101 freeways.

$2 Million of Recent Capital Improvements
Approximately $2 million of recent capital improvements include restroom renovations, elevator modernization, renovated ground-floor amenity space, installation of EV charging stations, and a roof replacement with warranty.

Prime Ground-Floor Retail Opportunity
The Property features 14,781 square feet of divisible, high-visibility corner retail space with 18-foot ceilings.