Los Angeles fund supervisor Capital Group has accomplished its $210-million buy of the Bunker Hill skyscraper it already occupied as a renter and vows to proceed increasing its downtown presence.
Capital Group was an anchor tenant at Financial institution of America Plaza, which it should now function as a landlord. The 55-story tower at 333 S. Hope St. was accomplished in 1974 and has lengthy ranked as one downtown’s most outstanding workplace addresses. Capital Group has been headquartered there since 1978.
Financial institution of America Plaza at 333 S. Hope St. was bought by funding agency Capital Group. The constructing additionally homes the agency’s headquarters.
(Robert Gauthier / Los Angeles Instances)
The transfer to purchase the constructing at a considerable low cost to its earlier worth is a part of a sample of well-heeled tenants deciding to turn out to be homeowners as an alternative of renters lately as workplace property values plunged because of the pandemic and a shift to distant work for a lot of firms.
“We knew the most effective landlord we may probably have can be ourselves,” stated Capital Group Chief Govt Mike Gitlin when the sale was first introduced in April.
Financial institution of America Plaza’s earlier proprietor, Brookfield Properties, defaulted on a $400 million mortgage and put the constructing in the marketplace as an alternative of going through foreclosures.
It was the biggest workplace sale in Los Angeles in 2026 and the biggest in Los Angeles County since 2023, in accordance with actual property brokerage Colliers, which marketed the property on behalf of the court-appointed receiver.
Potential consumers competing for Financial institution of America Plaza included each non-public and institutional buyers from the U.S. and abroad, stated Mark Schuessler, a dealer at Colliers.
Capital Group has been headquartered in downtown Los Angeles because it was based in 1931, in accordance with Chief Working Officer Rob Klausner . “We view it as the perfect location to put money into as we deliver our Los Angeles primarily based groups collectively,” he stated.
Capital Group is the biggest occupant within the constructing, taking over 350,000 sq. toes on 14 flooring. It plans to regularly take over one other 5 flooring because it consolidates staff from different workplaces downtown and in Santa Monica.
“One of the best ways to make sure an important setting in downtown L.A. is to create what we’re calling a vertical campus” with 2,100 staff, Gitlin stated. “It was simply this distinctive alternative the place the worth was a lot decrease than it had been traditionally, and it was on the market.”
Financial institution of America can be a big tenant within the constructing and can proceed to have its identify on prime. Different occupants embody financial consulting agency Evaluation Group Inc., legislation agency Musick Peeler & Garrett and Alliant Insurance coverage Providers.
Capital Group has greater than 9,000 staff in 34 workplaces in a number of nations. It manages $3.4 trillion in property for tens of millions of wealth administration and institutional shoppers, a consultant stated. 
Proprietor-users have surged as key gamers in L.A.’s workplace market, now accounting for practically half of all offers, in accordance with actual property knowledge supplier CoStar , whereas institutional buyers’ share of purchases has fallen from 45% to 26%.
Workplace customers from the general public sector are among the many consumers. The town of Los Angeles plans to purchase a 35-story tower downtown to be used by the Division of Water and Energy.
Manulife U.S. Actual Property Funding Belief stated in April that it might promote its high-rise at 865 S. Figueroa St. for $92.5 million pending approval from Los Angeles officers. It has an assessed worth of $248 million.
One other main public purchaser of a downtown workplace constructing was Los Angeles County, which in 2024 purchased Fuel Co. Tower for $200 million, a steep drop from its $632-million valuation in 2020. County officers stated on the time that the foreclosures sale was too good a deal to cross up.
The county is regularly transferring employees into the 55-story skyscraper on the base of Bunker Hill that was broadly thought of one of many metropolis’s most fascinating workplace buildings when it was accomplished in 1991.
