Wayco — Wells Fargo Center South

1

Key Metrics

Rentable SF

1,159,015

45 stories · Class A

Occupancy

42%

19 tenants

WALT

6.48 Yrs

12.9 yr avg total commitment

Year 1 NOI (Revised)

$8.98M

$7.75 PSF · per updated OM

2

Deal Summary

Lender Facilitated Sale — Call for Offers April 14, 2026. Trophy 45-story Class A office tower in Bunker Hill offered without an asking price (prior whisper ~$108 PSF / $125M). Revised Year 1 NOI of $8.98M per updated OM, with stabilized NOI projecting to $31.3M at 89.6% occupancy. ~80% discount to replacement cost. Strong leasing momentum with 63K SF of executed LOIs and 81K SF of active proposals. Two new parking agreements and reduced janitorial costs improve near-term cash flow.

Property Overview

Address355 S Grand Avenue, LA 90071

SubmarketBunker Hill · DTLA

Building ClassClass A

Stories45

Floor Plates25,651 SF

Site Area2.5 Acres

ArchitectSkidmore, Owings & Merrill

ZoningC2-4D Commercial

Pricing & Basis

Sale TypeLender Facilitated

Whisper Price$125M ($108 PSF)

Loan Basis~$230 PSF

Assessed Value~$425 PSF

vs. Replacement Cost~80% Discount

Tax Reassessment Savings~30% Opex Reduction

Near-Term CapexNone Required

Ownership HistoryMaguire → Brookfield

3

Broker Insights — Newmark

Source: Laura Stumm, Vice Chairman, Newmark U.S. Capital Markets. Direct broker outreach confirming pricing and leasing momentum. Current owner's constrained capital stack is unable to offer significant leasing concessions, yet tenant demand remains strong — validating the asset's quality.

Executed LOIs

63,000 SF

As-is deals in progress

Active Proposals

81,000 SF

Pipeline in negotiation

Total Pipeline

144,000 SF

12.4% of building

Vacancy Character

2nd Gen

Nicely built out · highly releasable

Pricing Intelligence

Whisper Price$125M ($108 PSF)

Loan Basis~$230 PSF

Assessed Value~$425 PSF

Discount to Replacement~80%

Potential Tax Savings~30% opex reduction

Seller Context

Listing BrokerLaura Stumm · Newmark

Current OwnerBrookfield (lender-controlled)

Prior OwnerMaguire Properties

Near-Term CapexNone required

Capital StackConstrained · limited TI

4

Broker Financial Update — March 2026

Updated financials from Newmark. Two new non-tenant parking agreements executed and revised janitorial quote obtained, resulting in a revised Year 1 NOI of $8,981,846 — a $1.23M improvement over the original OM underwriting. Offers due April 14, 2026 at 5:00 PM PST.

Revised Year 1 NOI

$8,981,846

Up from $7,752,571 in original OM

New Parking Revenue

360 Spaces

2 non-tenant agreements

Janitorial Savings

10.1%

Monthly cost reduction

New Parking Agreements

Tenant	Location	Spaces	Rate	Term
LA Tourism & Convention Board	Onsite	60 Must-Take	$347/Mo	1 yr (Apr-26)
SoCalGas	Offsite (X2)	300 Must-Take	$276/Mo	1 yr (Aug-26)

Both leases structured with landlord termination rights, maintaining ownership flexibility.

Janitorial Cost Reduction

Full-Occupancy Cleaning-73%

Day Porter Expenses-25%

Overall Monthly Janitorial-10.1%

Revised janitorial quote per updated Offering Memorandum.

5

Lease Expiration Profile

Minimal near-term rollover risk. Only 9.14% of leased area expires in the first 3 years. The weighted average lease term of 6.48 years provides substantial income stability, with 12.9-year average total commitment including extension options.

Period	SF Expiring	% of Leased	Cumulative %	Risk
2025–2027	44,524	9.1%	9.1%	Low
2028–2030	196,860	40.4%	49.5%	Medium
2031–2033	165,107	33.9%	83.4%	Medium
2034+	80,784	16.6%	100%	Low

1

Tenant Industry Mix

Law43%

Government32%

Insurance13%

Financial Services5%

Technology4%

Co-Working3%

2

Major Tenants

Tenant	Industry	RSF	% of Bldg	Lease Start	Lease Expiry	WALT
State of California	Gov	118,168	10.2%	Nov 2018	Oct 2033	7.8
Latham & Watkins	Law	56,365	4.9%	Sep 2008	Aug 2030	4.7
USCB	Law	42,689	3.7%	Jul 2017	Jun 2028	2.5
Yukevich Cavanaugh	Law	40,482	3.5%	Jan 2021	May 2030	4.4
Covington & Burling	Law	36,684	3.2%	Aug 2019	Jul 2031	5.6
Zurich Insurance	Insurance	33,795	2.9%	Jan 2018	Dec 2027	2.0
Crowell & Moring	Law	29,714	2.6%	Jun 2020	May 2032	6.4
Industrious	Co-Working	26,041	2.2%	Mar 2022	Feb 2033	7.2

Credit quality. Tenant roster is dominated by law firms (43% of leased area) and government agencies (32%), providing strong credit quality and counter-cyclical stability. Top 8 tenants account for approximately 79% of occupied space.

3

Lease Structure Summary

Leased SF

487,275

42% of total RSF

Available SF

671,740

58% vacancy

WALT

6.48 yrs

Weighted avg lease term

Avg Total Commitment

12.9 yrs

Including extension options

Near-Term Rollover

9.1%

Expires in 3 yrs

Total Tenants

19

Active leases

Office Stacking Plan

Floor-by-floor tenant composition — 355 South Grand Avenue, 45 stories, 1,159,015 RSF. Hover over any block for details.

42%

Leased

58%

Vacant

19

Tenants

6.5 yr

WALT

Legend: Vacant 2026 2027 2028 2029 2030 2031 2032 2033 2034 2038

1

Portfolio Rent Summary

Blended Current Rent

$25.38

PSF NNN · 442,665 SF leased

Market Rent

$26.00

PSF NNN · GWC underwriting assumption

Discount to Market

2.36%

Portfolio effectively at market

Rent at Expiration

$30.42

PSF · embedded step-up of +19.9%

Market at Expiration

$31.31

PSF · modest below-market gap at roll

WALT

6.48 yrs

Weighted avg · 12.9 yr avg total commitment

Validation. The blended in-place rent of $25.38 PSF is only 2.36% below GWC's $26.00 PSF underwriting assumption — confirming the market rent basis used in the financial model is well-supported by actual in-place leases. Embedded step-ups bring average rent to $30.42 PSF at lease expiration, with market projected at $31.31 PSF.

2

Positioning vs. Market

Above Market · Rollover Risk

~143K SF

32% of leased area paying above market

USCB/UCSB +42%, Gen Re +21%, Orrick +21%, Husch Blackwell +23%

Near Market · Stable

~62K SF

14% of leased area within ±5% of market

Latham & Watkins (upper floors), Bonne Bridges, Premier Office

Below Market · Renewal Upside

~238K SF

54% of leased area below market rent

State of CA (118K SF, −12–32%), Yukevich/Cavanaugh, Confidential LOIs

Two-sided story. The majority of leased SF (54%) pays below-market rents — providing tenant retention incentives and upside at renewal. The 32% paying above market (led by USCB/UCSB and General Reinsurance) presents rollover risk as leases expire through 2028–2034. The Confidential LOIs (54,216 SF) are structured at $18.00 PSF — a 30.8% discount to market, reflecting current concession levels in the DTLA leasing environment for new deals.

3

Current vs. Market Rent — Full Rent Roll

Above market (rollover risk) Below market (upside at renewal) Near market

Suite	Tenant	SF	Expiry	Rem. Term	Current Rent	Market Rent	vs. Market	Rent @ Exp.
110	Charles Schwab & Co.	3,562	Apr 2028	2.1 yr	$72.47 NNN	$60.00 NNN	+20.8%	$78.38 NNN
400	Latham & Watkins	25,978	Aug 2030	4.4 yr	$25.00 NNN	$26.00 NNN	−3.8%	$28.14 NNN
500	Latham & Watkins	25,965	Aug 2030	4.4 yr	$25.00 NNN	$26.00 NNN	−3.8%	$28.14 NNN
850	Innovative Legal Services	9,475	Sep 2031	5.5 yr	$20.00 NNN	$26.00 NNN	−23.1%	$23.75 NNN
1200	Bank of Southern California	10,966	Jun 2033	7.3 yr	$30.93 NNN	$26.00 NNN	+19.0%	$40.72 NNN
1400	Clyde & Co (Renewal)	9,000	Apr 2032	5.4 yr	$32.90 NNN	$26.00 NNN	+26.5%	$23.75 NNN
1500	Yukevich / Cavanaugh	25,986	May 2030	4.2 yr	$21.00 NNN	$26.00 NNN	−19.2%	$23.64 NNN
1600	Berkshire Hathaway	4,111	Jun 2027	1.3 yr	$31.59 NNN	$26.00 NNN	+21.5%	$32.85 NNN
1700	Yukevich / Cavanaugh	9,303	May 2030	4.2 yr	$21.00 NNN	$26.00 NNN	−19.2%	$23.64 NNN
1701	Bonne, Bridges, Mueller, O.	550	Dec 2030	4.8 yr	$24.00 Gross	$15.00 Gross	+60.0%	$24.00 Gross
1750	Bonne, Bridges, Mueller, O.	7,701	Dec 2030	4.8 yr	$25.00 NNN	$26.00 NNN	−3.8%	$28.14 NNN
1800	State of California (DIR)	18,312	Oct 2033	7.6 yr	$22.72 NNN	$26.00 NNN	−12.6%	$28.54 NNN
1825–1875	State of California (DIR)	782	Oct 2033	7.6 yr	$22.69–22.72 NNN	$26.00 NNN	−12.6%	$28.51–28.54
1900	State of California (OSHPD)	26,166	Oct 2033	7.6 yr	$21.88 NNN	$26.00 NNN	−15.8%	$27.51 NNN
2000–2025	State of California (DSA/OSHPD)	21,197	Oct 2033	7.6 yr	$21.88–22.71 NNN	$26.00 NNN	−12.6–15.8%	$27.51–28.54
2050	State of California (HSRA)	4,969	Aug 2033	7.4 yr	$20.58 NNN	$26.00 NNN	−20.8%	$25.91 NNN
2100	State of California (DSA)	26,166	Oct 2033	7.6 yr	$22.71 NNN	$26.00 NNN	−12.6%	$28.54 NNN
2200	State of California (OAH)	13,503	Mar 2035	9.0 yr	$17.80 NNN	$26.00 NNN	−31.5%	$22.37 NNN
2400–2425	General Reinsurance	11,997	Dec 2033	7.8 yr	$31.49 NNN	$26.00 NNN	+21.1%	$41.43 NNN
2450	Premier Office Centers, LLC	13,462	Nov 2031	5.7 yr	$22.71 NNN	$26.00 NNN	−12.7%	$23.64 NNN
2700	Orrick	26,658	Feb 2034	7.9 yr	$31.49 NNN	$26.00 NNN	+21.1%	$43.09 NNN
2825–2850	Husch Blackwell	12,491	Feb 2028	1.9 yr	$32.06 NNN	$26.00 NNN	+23.3%	$33.34–34.67 NNN
3103S	USCB, Inc. (storage)	245	Jun 2028	2.3 yr	$24.00 Gross	$15.00 Gross	+60.0%	$24.00 Gross
3150	USCB, Inc.	15,270	Jun 2028	2.3 yr	$36.94 NNN	$26.00 NNN	+42.1%	$39.96 NNN
3200	UCSB, Inc.	26,658	Jun 2028	2.3 yr	$36.94 NNN	$26.00 NNN	+42.1%	$39.96 NNN
3300	Taboola	20,532	Jun 2033	7.3 yr	$31.49 NNN	$26.00 NNN	+21.1%	$41.43 NNN
4400	Confidential LOI · new lease	27,108	Mar 2038	12.0 yr	$18.00 NNN	$26.00 NNN	−30.8%	$25.39 NNN
4500	Confidential LOI · new lease	27,108	Mar 2038	12.0 yr	$18.00 NNN	$26.00 NNN	−30.8%	$25.39 NNN
4600–4618	Latham & Watkins (storage)	4,422	Aug 2030	4.4 yr	$12.00 Gross	$15.00 Gross	−20.0%	$12.00 Gross
4700	Yukevich / Cavanaugh (storage)	5,193	May 2030	4.2 yr	$5.78 Gross	$15.00 Gross	−61.5%	$5.78 Gross
PL-112	Nick & Stef's Steakhouse	756	Dec 2029	3.8 yr	$24.00 Gross	$15.00 Gross	+60.0%	$24.00 Gross
Portfolio Total / Blended		442,665	—	6.48 yr	$25.38 PSF	$26.00 PSF	−2.36%	$30.42 PSF

(1) State of California suites converted from Gross to NNN equivalent where applicable. (2) Management office excluded. (3) USCB 3103S (storage) has no base rent obligation; excluded from NNN avg. (4) Gross leases (Latham storage, Yukevich storage, Bonne Bridges, Nick & Stef's) shown on Gross basis; not directly comparable to NNN. (5) Confidential LOI suites 4400/4500 reflect as-is deals with no TI, at below-market rate.

4

Lease Expiration Schedule — Updated (Year by Year)

Year 8 (Mar-34) is the critical rollover window — 174,818 SF (15.1% of leased area) expires, concentrated with State of CA and other institutional tenants. Near-term (Years 1–3, through Mar-29) is benign at 9.1% of leased area. Years 4 and 7 have zero scheduled expirations.

Mar '27

43,021 SF

3.71%

Mar '28

16,602 SF

1.43%

Mar '29

46,251 SF

3.99%

Mar '30

756 SF

0.07%

Mar '31

105,098 SF

9.06%

Mar '32

31,937 SF

2.75%

Mar '33

0 SF

0.00%

Mar '34 ★

174,818 SF

15.1%

Mar '35

13,503 SF

1.16%

Mar '36–'37

0 SF

0.00%

Mar '38

54,216 SF

4.68%

★ Mar '34 = largest single-year rollover (15.1%) · Bars scaled relative to Mar '34 peak · % of total leased area (442,665 SF) · Source: Newmark OM, March 2026

5

Key Observations for Investors

Underwriting Validation

The blended in-place rent of $25.38 PSF is within 2.4% of the $26.00 PSF NNN market assumption used in GWC's underwriting — confirming the model is grounded in actual market evidence, not aspirational projections.

Near-Term Rollover Risk

Husch Blackwell (12,491 SF, +23% above market) expires Feb 2028. USCB/UCSB (42,173 SF, +42% above market) expires Jun 2028. Both are candidates for significant rent step-down or vacancy — representing ~12% of leased SF rolling in the next 2.5 years.

State of CA — Large Below-Market Block

State of California occupies ~118K SF across multiple suites at $17.80–$22.72 PSF NNN — 12–32% below market, with leases expiring 2033–2035. Their below-market position provides strong tenant retention and meaningful upside at renewal.

New Lease Concession Environment

The two Confidential LOIs (54,216 SF total) are being done at $18.00 PSF — 30.8% below the $26 market assumption. This signals that new leasing in DTLA requires meaningful concessions, which compresses near-term lease-up economics relative to the stabilized model.

Ask Astro about any specific tenant's rent positioning, rollover exposure, or mark-to-market opportunity.

1

Building Specifications

Structure

TypeClass A Office Tower

Stories45

Year Built1983

Renovated2020 ($40M)

ArchitectSkidmore, Owings & Merrill

ConstructionSteel Frame · Granite/Glass Curtain Wall

Ceiling Height13 ft (slab-to-slab)

Elevators20 Passenger

Site & Zoning

Rentable SF1,159,015

Floor Plates25,651 SF

Site Area2.5 Acres

ZoningC2-4D Commercial

Parking1,236 Stalls

Parking Ratio1.1 / 1,000 SF

HVACCentral Plant (333 S Grand)

Power4W/SF · 277/480V

2

HALO Amenity Center

$40M renovation completed in 2020. The 63,283 SF HALO amenity center spans multiple levels and represents one of the most comprehensive amenity packages in Downtown LA. Purpose-built to attract and retain top-tier tenants in a competitive market.

Total SF

63,283

Multi-level complex

Investment

$40M

Completed 2020

Conference Center

Yes

Full-service facility

Fitness Center

Yes

State-of-the-art

3

Certifications & Sustainability

LEED

✓

Green Building Certified

Energy Star

✓

Energy Performance

WELL

✓

Health & Wellness

BOMA 360

✓

Operations Excellence

4

Reciprocal Easement Agreement (REA)

REA with North Tower (333 S Grand). Effective December 1982, amended 2018. Governs shared common areas, parking, and building systems between the two towers comprising the Wells Fargo Center campus.

Cost Allocation

North Tower Share56%

South Tower Share44%

Parking SplitSimilar allocation

Shared Systems

Central PlantHVAC from 333 S Grand

Common AreasLobby · Plaza · Loading

Parking Structure1,236 stalls (South)

1

DTLA Office Market (3Q 2025)

Total Inventory

38.7M SF

DTLA office market

Vacancy Rate

30.0%

Elevated post-pandemic

Class A Asking

$46.18

FSG per SF

Distressed

23%

Unable to service debt

Market dislocation. 23% of DTLA office buildings are unable to service their current debt. This creates a once-in-a-cycle acquisition opportunity, particularly in the trophy segment where replacement cost basis is significantly higher than current pricing.

Employees

325,000+

DTLA workforce

Residents

80,000+

Downtown population

Active Requirements

2.7M SF

Leasing pipeline

2

Bunker Hill Submarket

Inventory

9.0M SF

7 trophy buildings

Occupancy

66%

Submarket average

Class A Asking

$51.00

FSG per SF

Bunker Hill Competitive Set

Building	RSF	Occupancy	vs. Subject
Two Cal Plaza	1,300,000	92%	+50pp
400 S Hope	700,000	75%	+33pp
B of A Plaza	1,400,000	67%	+25pp
333 S Grand (North Tower)	1,400,000	61%	+19pp
One Cal Plaza	1,000,000	58%	+16pp
355 S Grand (Subject)	1,159,015	42%	—

Lowest occupancy in the set. Subject property trails the Bunker Hill competitive set, but the distressed pricing creates meaningful upside if the building can capture even a portion of the 2.7M SF active leasing pipeline.

3

Transit & Accessibility

Walk Score

99

Walker's Paradise

Transit Score

100

Excellent Transit

Metro Access

Regional Connector

Direct rail access

Freeway Access

US-101 · I-110

Major corridor access

1

DTLA Office Tower Sales (300K+ SF) — 2023–2025

Subject whisper at $108 PSF would be the lowest $/PSF of any major DTLA tower trade this cycle. Pricing across the competitive set ranges from $114–$201 PSF, with most transactions reflecting 45–68% discounts from prior valuations. Brookfield is the most active seller in the market.

Building	SF	Sale Price	$/PSF	Buyer	Year	Occ.	vs. Subject
601 S Figueroa	1,046,000	$210M	$201	Uncommon Developers	2025	72%	+$93
Union Bank Plaza	701,000	$111M	$158	Waterbridge Capital	2023	—	+$50
Gas Company Tower	1,300,000	$200M	$154	LA County	2024	—	+$46
777 Tower	1,024,000	$145M	$145	Consus Asset Mgmt	2024	—	+$37
Aon Center	1,100,000	$148M	$134	Carolwood LP	2023	—	+$26
Union Bank Plaza (resale)	701,000	$80M	$114	SW Carpenters Pension	2024	—	+$6
355 S Grand (subject)	1,159,015	$125M	$108	TBD	2025	42%	—

2

Comp Analysis

Comp Avg $/PSF

$151

6 transactions

Subject $/PSF

$108

28% below comp avg

Comp Range

$114–$201

PSF range

Total Comp Volume

$894M

5.9M SF traded

3

Transaction Context

Building	Seller	Prior Basis	Discount	Notes
601 S Figueroa	Brookfield	$250M debt	Didn't cover debt	Newmark (Laura Stumm) on sell side; off-market
Gas Company Tower	Brookfield	$630M assessed	−68%	Owner-user purchase (LA County)
777 Tower	Brookfield	$319M debt	< 50% of debt	Korean buyer; lender-facilitated
Aon Center	Shorenstein	$269M (2014)	−45%	Largest post-pandemic DTLA office sale at time
Union Bank Plaza	KBS → Waterbridge	$208M (2010)	−62%	Resold 18 months later at additional loss ($80M)
355 S Grand (subject)	Brookfield	$230 PSF loan	−53% vs. loan	Newmark (Laura Stumm); same broker as 601 Fig

Brookfield pattern. Three of the six comps were sold by Brookfield, none of which covered outstanding debt. The subject is also a Brookfield-controlled asset being marketed by the same Newmark team (Laura Stumm) that closed the 601 Figueroa deal. This suggests a motivated seller working through a systematic portfolio disposition.

4

DTLA Office Lease Comps — Jul 2025–Feb 2026

12 major DTLA lease transactions totaling 458,419 SF signed in the last 8 months. Government and legal tenants dominate activity, with renewals slightly outpacing new leases. Average deal size is ~38K SF, and asking rents cluster around $2.96–$3.53 PSF/mo full service. These comps frame the leasing velocity and pricing achievable at 355 S Grand.

Building	Tenant	SF	Date	Type	Term	Ask Rent	Vacancy
U.S. Bank Tower 633 W 5th St · Silverstein · Class A	Wilson Elser	24,416	Feb 2026	New	—	$3.52	23.0%
One California Plaza 300 S Grand · DigitalBridge · Class A	Gordon Rees Scully	26,187	Feb 2026	New	—	$2.33 NNN	44.8%
Two California Plaza 350 S Grand · CIM Group · Class A	WilmerHale	27,488	Dec 2025	Renewal	—	$3.53	4.1%
Figueroa at Wilshire 601 S Figueroa · Uncommon Developers · Class A	Acumen LLC	44,426	Dec 2025	Renewal	—	$3.34	50.1%
Ernst & Young Plaza 725 S Figueroa · Brookfield · Class A	US Secret Service	94,910	Dec 2025	Renewal	—	$2.96	10.6%
865 S Figueroa 865 S Figueroa · Manulife · Class A (4-Star)	—	20,929	Nov 2025	New	—	$3.28	56.4%
865 S Figueroa 865 S Figueroa · Manulife · Class A (4-Star)	Banc of California	40,000	Oct 2025	New	11 yr	$3.28	56.4%
FourFortyFour S Flower 444 S Flower · Class A	US SEC	57,903	Aug 2025	Renewal	4 yr	$3.04	26.3%
AON Center 707 Wilshire · Carolwood LP · Class A (4.5-Star)	Consulate Gen. of India	20,264	Aug 2025	New	10 yr	$3.08	24.2%
The Grand 151 S Olive · Related California · Class A	University of Michigan	20,000	Jul 2025	New	—	—	5.5%
Two California Plaza 350 S Grand · CIM Group · Class A	SoCalGas	54,616	Jul 2025	New	—	$3.53	4.1%
City National Plaza 515 S Flower · CommonWealth Partners · Class A (4.5-Star)	—	27,280	Jul 2025	New	—	—	—

Source: CoStar Group · Sourced 3/17/2026 · Asking rents $/SF/mo full service unless noted

5

Lease Comp Analysis

Total Leased

458,419 SF

12 transactions, 8 months

Avg Deal Size

38,202 SF

Range: 20K–95K SF

Avg Asking Rent

$3.19 PSF/mo

Range: $2.33–$3.53

New vs Renewal

7 New · 5 Renewal

58% new lease activity

Avg Bldg Vacancy

27.8%

Range: 4.1%–56.4%

Top Tenant Types

Gov't & Legal

US Gov (3), Law Firms (3)

6

Implications for 355 S Grand

Government anchors are the market's most active tenant class. Three of the 12 comps are US federal agencies (Secret Service, SEC, Consulate), all signing renewals or long-term new leases. Wells Fargo South's existing GSA tenancy (Wells Fargo occupancy + potential federal expansion) aligns with this demand driver. Legal tenants (Wilson Elser, Gordon Rees, WilmerHale) are the second-most active segment — law firms gravitate to Bunker Hill and the Financial District, both walkable from 355 S Grand.

Buildings with 40–56% vacancy are still executing large leases. 865 S Figueroa (56.4% vacant) signed two deals totaling 61K SF; Figueroa at Wilshire (50.1%) renewed 44K SF. This suggests that even deeply distressed occupancy does not preclude meaningful leasing velocity — a bullish signal for the subject's repositioning thesis at current vacancy levels.

Asking rents of $2.96–$3.53 PSF/mo validate the OM's stabilized rent assumptions. Class A tower rents in the DTLA corridor remain anchored in the low-$3 range, with premium assets like Two Cal Plaza at the top ($3.53). The subject's pro forma should pencil comfortably within this band given its location, floor plate quality, and repositioning capital plan.

1

Financial Summary

Revised Year 1 NOI: $8,981,846. Updated Offering Memorandum incorporates new parking revenue from two non-tenant agreements and reduced janitorial costs, improving Year 1 NOI by $1.23M over the original underwriting. Stabilized NOI at Year 5 projects to $31.3M at 89.6% occupancy.

Year 1 NOI (Revised)

$8,981,846

$7.75 PSF

Stabilized NOI (Yr 5)

$31,331,960

$27.03 PSF · 89.6% occupied

Effective Gross Revenue

$25,354,228

$21.86 PSF · Year 1

Total Opex

$16,372,382

$14.12 PSF · Year 1

2

Revenue Breakdown — Year 1

Line Item	Annual Amount	$/SF	Notes
Potential Base Rent	$32,519,519	$28.04	All leased + vacant at market
Less: Lost Absorption/Turnover	($18,687,842)	($16.12)	Vacant space not yet leased
Less: Free Rent	($937,354)	($0.81)	Concessions
Total Rental Revenue	$12,894,323	$11.12
Expense Recoveries	$5,335,070	$4.60	NNN reimbursements
Parking Revenue	$3,792,112	$3.27	Monthly + transient + validation
Rent Abatement Credit	$605,647	$0.52	Seller credit
Bridge Rent Credit	$2,740,046	$2.36	Seller credit
Misc. / Direct Billback	$142,253	$0.12	Antenna, photoshoot, HVAC billback
EFFECTIVE GROSS REVENUE	$25,354,228	$21.86

3

Operating Expenses — Year 1

Expense Category	Annual Amount	$/SF	Year 5 Projected
Repairs & Maintenance	$2,956,286	$2.55	$3,327,326
Insurance	$2,464,324	$2.13	$2,773,618
Security / Fire Safety	$2,273,747	$1.96	$2,559,122
Utilities	$2,071,346	$1.79	$3,580,095
Property Taxes	$1,754,775	$1.51	$1,901,100
Parking	$1,638,636	$1.41	$1,844,300
Cleaning & Janitorial	$1,452,325	$1.25	$2,984,359
General & Administrative	$1,102,748	$0.95	$1,241,152
Management Fee	$605,235	$0.52	$1,459,201
Non-Recoverable	$52,960	$0.05	$59,607
TOTAL EXPENSES	$16,372,382	$14.12	$21,729,882

Expense assumptions. Based on 2025 Budget inflated 3% for 2026. All expenses (excl. management fees and RE taxes) grow 3%/year. RE taxes reassessed at $120M hypothetical purchase price ($104 PSF). Management fee at 2.75% of Effective Gross Revenue. Capital reserves at $0.25 PSF/year.

4

Cash Flow Summary

Line Item	Amount	$/SF	Notes
Effective Gross Revenue	$25,354,228	$21.86	All Year 1 revenue sources
Total Operating Expenses	($16,372,382)	($14.12)	All operating expenses
Year 1 NOI (Original OM)	$8,981,846	$7.75	Revised per March 2026 update

In-Place NOI

$7,752,571

$6.69 PSF · 38% occupied

Revised Year 1 NOI

$8,981,846

$7.75 PSF · per broker update

Stabilized NOI (Yr 5)

$31,331,960

$27.03 PSF · 89.6% occupied

5

Parking Revenue & Structure

Year 1 Parking Revenue

$3,792,112

$3.27 PSF

Total Stalls (South)

1,236

903 onsite + 333 offsite

REA Split

44% / 56%

South Tower / North Tower

Parking Operator

ABM

$10,268/mo mgmt fee

Onsite Subterranean Garage

Total Stalls903

ADA Stalls18

EV Stalls11

Reserved Stalls20

Visitor Only69

Offsite X-2 Garage (235 S Hill St)

Total Stalls333

ADA Stalls7

EV Stalls2

Visitor Only68

Parking Tax10% on all revenue

Revenue structure. Monthly parking revenue from South Tower tenants retained 100% by owner. Transient, validation, and other parking revenue split 44% to South Tower per REA. New non-tenant agreements (LA Tourism: 60 spaces, SoCalGas: 300 spaces) provide additional revenue with landlord termination flexibility.

6

Underwriting Assumptions

Leasing Assumptions

Office Market Rent$26.00 PSF NNN

Ground Floor Office/Retail$60.00 PSF NNN

Retail$30.00 PSF NNN

Storage$15.00 PSF Gross

Market Rent Growth3% annually

Renewal Probability70%

Downtime12 months

Capital & Cost Assumptions

TI — New (Full Floor)$100 PSF

TI — Renew (Full Floor)$50 PSF

TI — New (Partial Floor)$50 PSF

Leasing Commissions (New)6.0%

Leasing Commissions (Renew)3.0%

Management Fee2.75% of EGR

Capital Reserves$0.25 PSF/yr

Occupancy Projections

Year	Occupancy	Occupied SF
Year 1	37.7%	437,279
Year 2	54.3%	629,175
Year 3	73.3%	850,370
Year 4	87.6%	1,015,370
Year 5 (Stabilized)	89.6%	1,038,514

Lease-Up Schedule

Vacant SF to Lease585,626 SF

Lease-Up Timeline48 months

Static Vacancy (7.5%)86,422 SF

Revenue Growth Rate3%/year

RE Tax Growth Rate2%/year

Tax Reassessment Basis$120M ($104 PSF)

Tax Rate1.19969%

1

Investment Thesis

Distressed acquisition of a trophy asset at $108 PSF ($125M). Wells Fargo Center South represents a rare opportunity to acquire a premier SOM-designed tower in Bunker Hill at an ~80% discount to replacement cost, with a ~$230 PSF loan basis and ~$425 PSF assessed value. Existing cash flow from institutional-quality tenants, 144K SF leasing pipeline, and ~30% opex reduction via tax reassessment provide clear paths to value creation.

2

Value Creation Strategies

01

Distressed Basis Arbitrage

Acquire at $108 PSF ($125M) — an ~80% discount to replacement cost. Loan basis is ~$230 PSF and assessed value ~$425 PSF. No major near-term capex required (elevators, roof, HVAC all in excellent condition). Only two institutional owners since delivery.

02

Lease-Up Momentum

58% vacancy creates massive upside. Per Newmark, 63K SF of LOIs are already executed and 81K SF in active proposals — despite the current owner's inability to offer meaningful concessions. A well-capitalized buyer unlocks the 2.7M SF DTLA leasing pipeline at Bunker Hill's $51/SF FSG asking.

03

Signage & Naming Rights

Building-top signage and naming rights are available — a rare opportunity for a 45-story tower on Grand Avenue. This creates a separate revenue stream and marketing advantage for tenant recruitment.

04

Institutional Tenant Base

Existing tenants (State of CA, Latham & Watkins, Covington) provide stable cash flow during lease-up. Only 9.1% of leased area expires in first 3 years, providing runway to execute repositioning strategy.

05

Amenity Advantage

The 63,283 SF HALO amenity center is one of the most extensive in DTLA. This $40M investment is already in place and requires no additional capital, serving as a key differentiator for prospective tenants.

06

Tax Reassessment Upside

Acquiring at $125M vs. the current ~$425 PSF assessed value triggers a reassessment that could reduce operating expenses by ~30%. This gives a new owner a meaningful competitive advantage over neighboring properties to attract and retain tenants.

07

Transit-Oriented Location

Walk Score 99, Transit Score 100. Direct access to Metro Regional Connector. Bunker Hill remains the premium office address in DTLA with 7 trophy towers and proximity to cultural institutions.

3

Key Risk Factors

DTLA office headwinds. 30% vacancy rate and 23% of buildings unable to service debt indicate prolonged market stress. Lease-up timeline may extend beyond initial projections.

Macro Risks

Remote WorkOngoing headwind

DTLA Vacancy30% and rising

Competitive Supply6 other trophy towers

Safety PerceptionDTLA reputation

Deal-Specific Risks

58% VacancyHeavy lease-up needed

REA ComplexityShared costs w/ North

Carry CostsTI/LC for lease-up

Cap Rate TrendOffice cap expansion

4

Astro Intelligence Deal Analysis

Conviction: High-Moderate

This is a generational basis play on a trophy asset. At $108 PSF ($125M), you're buying a 45-story SOM-designed tower in Bunker Hill at roughly 80% below replacement cost and 53% below the lender's own loan basis. That kind of discount creates a margin of safety that's hard to find in institutional-quality real estate. The building has been through only two owners since 1983, carries $40M in recently completed amenity improvements, and requires no near-term capex. That's an unusually clean entry point for a distressed deal.

What Works

The rent roll validates the thesis. In-place rents are only 2.4% below the $26 PSF market assumption, which means the underwriting isn't aspirational — it's grounded in what tenants are actually paying. 54% of leased SF is below market, providing both retention incentives and embedded upside at renewal. The State of California alone — 118K SF, 12–32% below market, expiring 2033–2035 — is a near-locked anchor with meaningful mark-to-market on a long horizon. The tenant credit profile (law 43%, government 32%) is about as counter-cyclical as office gets.

What Needs Scrutiny

The near-term rollover is the real test. USCB/UCSB (42K SF, +42% above market) and Husch Blackwell (12.5K SF, +23%) expire by mid-2028. That's ~55K SF of above-market rent that will either re-price down significantly or vacate — potentially adding to the 58% already empty. Meanwhile, the Confidential LOIs ($18 PSF, −31% below market) signal that new deals require deep concessions. If that's the clearing price for new leases, the ramp to $26 PSF stabilized rents will take longer and cost more in TI/concessions than the proforma suggests.

Comp Context

The basis is defensible vs. every comparable trade this cycle. At $108 PSF, the subject would be the lowest $/PSF of any major DTLA tower transaction since 2023 — 28% below the comp average of $151 PSF. Brookfield has been systematically disposing at losses (601 Figueroa, Gas Company Tower, 777 Tower), and the same Newmark broker (Laura Stumm) is on the sell side here. The pattern suggests a motivated counterparty and room to negotiate. The 42% occupancy partly explains the discount, but even adjusting for vacancy, the basis is well below where peers have traded.

The Big Question

Can a new owner lease 585K SF in a 30% vacancy market? The stabilized proforma projects 89.6% occupancy by Year 5 — requiring ~150K SF/year of net absorption in a submarket where the subject currently trails every Bunker Hill comp. The 144K SF pipeline (63K LOIs + 81K proposals) is encouraging, but it's pre-execution. The execution risk is not whether the building is good — it is — but whether DTLA's structural headwinds (remote work, safety perception, competitive supply) allow a 48-month lease-up at rents that justify the carry costs. The tax reassessment savings (~30% opex reduction) and the HALO amenity center give meaningful edge, but this is a capital-intensive, patience-required play.

Bottom line: The basis is exceptional and the downside protection is real — you're buying at a fraction of replacement cost with institutional tenants in place. The conviction dimmer is execution timeline and carry cost. A well-capitalized buyer with a 7–10 year horizon and a competitive TI budget can create significant value here. For shorter-hold or yield-oriented investors, the J-curve is steep: Year 1 NOI of $8.98M on $125M is a 7.2% going-in yield, but stabilized NOI of $31.3M implies a path to $300M+ exit value at a 6.5% cap. The spread between basis and potential exit is enormous — but it requires patience and execution in a market that's testing everyone's conviction.

1

Location — Bunker Hill, Downtown Los Angeles

355 South Grand Avenue. Located in the heart of Bunker Hill, DTLA's premier office submarket. Adjacent to the Walt Disney Concert Hall, The Broad museum, and MOCA. Direct access to Metro Regional Connector at Grand/Bunker Hill station.

2

Neighborhood Context

Cultural & Civic

Walt Disney Concert Hall0.1 mi

The Broad Museum0.2 mi

MOCA0.2 mi

Grand Park0.3 mi

LA City Hall0.5 mi

Transit & Access

Metro Regional Connector0.1 mi

US-101 Freeway0.3 mi

I-110 Freeway0.5 mi

Union Station0.8 mi

LAX Airport16 mi

Wells Fargo Center South

Office Stacking Plan

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