LOS ANGELES — Capital Group has agreed to pay about $210 million for the 55-story Bank of America Plaza atop Bunker Hill in downtown Los Angeles, a deal that would place roughly 2,100 of the investment firm's employees in the 1.4-million-square-foot tower.

Capital Group declined to confirm the reported $210-million sale price. The building was last appraised in late 2024 at $212.5 million, down from $605 million 10 years earlier. Capital Group plans to occupy the majority of the building.

"The best way to ensure a great environment in downtown L.A. is to create what we're calling a vertical campus. It was just this unique opportunity where the price was much lower than it had been historically, and it was for sale," said Mike Gitlin, chief executive of Capital Group. In a separate comment, Gitlin added, "We knew the best landlord we could possibly have would be ourselves."

Owner-users now account for nearly half of all downtown Los Angeles office deals. Institutional investors' share of downtown office purchases has fallen from 45% to 26%.

Overall office vacancy downtown has climbed from 14% in 2019 to 34%. In the financial district specifically, nearly 40% of office space was available at the end of last year.

Recent changes in federal tax laws regarding property depreciation benefits have added incentive for tenants to buy office buildings. "Everyone knows we're near the bottom of this cycle, and it's always good to buy near the bottom," said Kevin Shannon, a property broker.