Northwind Group announced the origination of a $132 million first-mortgage acquisition loan secured by 333 South Grand Avenue, a 55-story Class A office tower in the Bunker Hill submarket of Downtown Los Angeles. The property spans more than 1.4 million rentable square feet and includes approximately 1,700 parking spaces.
The financing supports the acquisition of the property and includes an additional $48 million “good news” facility for future leasing costs, giving the sponsor immediate capital to pursue leasing opportunities following the ownership transition. The tower has benefited from more than $63 million in recent capital improvements, including redevelopment of the Halo retail center, lobby renovations, and elevator modernization.
The building occupies an entire city block and is home to a tenant roster anchored by major law firms and financial institutions. Existing tenants include Wells Fargo and Gibson Dunn. The property also features a parking ratio of more than 1.2 spaces per 1,000 square feet, an important amenity in the Downtown Los Angeles office market.
The transaction marks Northwind Group’s fifth loan to 601W Companies and follows a first-mortgage financing earlier this year for the acquisition of 175 West Jackson Boulevard in Chicago. Both properties were acquired at significant discounts to historical valuations, reflecting the repricing of office assets in major U.S. markets.
The loan was originated through Northwind Debt Fund III, the firm’s flagship closed-end credit vehicle focused on real estate debt investments. Northwind said 2026 is expected to represent the highest annual origination volume in the firm’s history.
Support: The acquisition was arranged by Rael Gervis of Meridian. Northwind Group was represented by John Vavas of Polsinelli Law Firm.
KEY QUOTES:
“We are pleased to finance the acquisition of 333 South Grand which marks our first loan in Los Angeles to a repeat borrower of ours. The Bunker Hill submarket has historically attracted a concentration of financial institutions, law firms, and government tenants, and this property is one of the best buildings in the area, considering its location, high-quality physical condition and its strong caliber of existing tenants like Wells Fargo and Gibson Dunn with strong in-place cash flow.
The broader repricing of Downtown Los Angeles office assets has created an attractive entry point that fundamentally changes the competitive position of new ownership. Older buildings held by owners with elevated cost bases are constrained in their ability to offer the tenant improvement and leasing commission packages the market requires. Our borrower enters the market without that constraint, and with $50 million of dedicated leasing capital, they are well-positioned to compete for new tenants and build on the strong foundation already in place.”
Ran Eliasaf, Founder and Managing Partner, Northwind Group
