CBRE Global Investors Grabs 700 KSF Downtown L.A. Office Tower
- Jul 11, 2012
Trophy office assets in downtown Los Angeles are not easy to come by, but CBRE Global Investors has just gotten its hands on a big one, the 701,500-square-foot tower at 400 S. Hope St. The asset last changed hands in 2005, when Tishman Speyer Properties’ Tishman Speyer Real Estate Venture VI fund acquired it for approximately $249 million. Various news reports cite a sales price of roughly $238.4 million for the recent trade of the property.
The players involved have not disclosed the purchase price for 400 S. Hope, also known as the Mellon Bank Center, and it has not been made clear if the total included the assumption of debt. When Tishman bought the 26-story building seven years ago, it relied on a $171.5 million loan through JPMorgan Chase Bank N.A. to partially finance the acquisition.
CBRE Global has already mapped out a plan for the building, which was developed in 1982. The firm expects to boost the 81 percent occupancy level through a repositioning program that will include the addition of such coveted features as a ground-level restaurant. CBRE Global also plans to take the property to a new level of sustainability and highlight the achievement with the U.S. Green Building Council’s LEED certification program.
“Downtown Los Angeles is a market that is experiencing rapid transformation,” said Vance Maddocks, president of CBRE Strategic Partners U.S. “It is becoming a live/work/play environment comparable to other West Coast CBDs, with over $17 billion in entertainment and infrastructure improvements over the past decade. Since 2008, the area has seen an influx of new business activity in keeping with the growing demands of employees and residents. We believe our strength of ownership and aggressive repositioning program, coupled with the dynamics of the market, will make 400 S. Hope attractive to prospective tenants.”
The sale of 400 S. Hope is a big deal in the downtown Los Angeles market. There was not a single comparable transactions in the first quarter of the year.