Bought for $13 Million. Renovated. Sold for $5 Million.

What matters

1. The building lost 62% of its purchase price  950 S Broadway is a seven-story office and retail building in Downtown Los Angeles. It was purchased the 34,550-square-foot property from G.H. Palmer Associates for $13 million in January 2018. That worked out to approximately $376 per square foot. In July 2026, the building sold for $5 million—or just $145 per square foot. That is an $8 million decline in price and a 62% loss in recorded value. The property spent 314 days on the market and ultimately sold 12% below its $5.7 million asking price.
2. The real economic loss may have been even larger  The building was reportedly renovated in 2021, but the amount invested in those improvements has not been disclosed. The $8 million price decline does not include renovation costs, financing, property taxes, insurance, leasing expenses or selling commissions. Property taxes alone were approximately $184,000 in 2025. The building generated rental income during the ownership period, which may have offset some of these costs. Without the complete rent, debt and renovation records, we cannot calculate the seller’s exact total return. What we can confirm is that the building sold for $8 million less than its 2018 purchase price before accounting for any additional capital invested.
3. Full occupancy did not protect the valuation.  The property was reportedly 100% leased when it sold. Approximately 27,407 square feet is office space and another 7,143 square feet is retail. That is what makes this sale important. This was not simply a vacant office building being liquidated. It was renovated, fully leased and held for more than eight years—and the market still repriced it from $376 to $145 per square foot.
4. The new buyer has a completely different risk profile.   The new owner purchased the same building at $145 per square foot—approximately 36% below the Downtown market’s reported average sale price of $227 per square foot. The acquisition included a $1 million loan, equal to only 20% of the purchase price. That suggests the buyer contributed approximately $4 million of equity. The loan has a 12-month term and is classified in public records as construction financing, which may indicate another round of improvements or repositioning. The property’s assessed value before the sale was approximately $14.8 million, nearly three times the purchase price. A future reassessment could materially reduce the current $184,000 annual property-tax expense, although the final value will be determined by the county assessor.