Lincoln Property Teams Up with Rockwood to Take Back 915 Wilshire
- Mar 24, 2016
Los Angeles—Lincoln Property Co. and affiliates of Rockwood Capital LLC, have acquired 915 Wilshire, a 22-story office building in downtown Los Angeles and plan to give the Class A tower a makeover to expand its appeal to creative tenants.
Lincoln is very familiar with the granite and glass tower–the Dallas-based firm owned it before selling the asset in 2007 to Brickman Associates, which kept Lincoln on as property manager and leasing agent.
The sale price of the property was not disclosed. Kevin Shannon of Newmark Grubb Knight Frank brokered the deal.
The 390,312-square-foot building was erected in 1980 and last renovated by Lincoln more than a decade ago. It sits within walking distance of public transportation and will also be near the planned Los Angeles Streetcar expected to run from LA Live to the Civic Center. The building is also close to the 110 Freeway.
“Lincoln has a lot of history with this property, and we’re thrilled to have it back into our portfolio once again,” David Binswanger, Lincoln executive vice president, said in a prepared statement. “We really believe in downtown LA, and with this particular building, we were attracted to its potential for renovation. We look forward to executing our vision to create a more modern, inviting space for current and future tenants of 915 Wilshire.”
The firm plans to update the ground-floor lobby and valet area, redesign outdoor patio space and replace elevators and dated building systems. The building already features column-free spaces and floor-to-ceiling windows–attractive to tenants who want lots of natural light and open floor plans.
The building is currently 88 percent leased to tenants from a variety of industries, including engineering, finance, insurance real estate and media. The owners plan to keep the current tenants while attracting new creative clients who are flocking to downtown L.A. office spaces.
“We believe the planned renovations for 915 Wilshire will make the property even more desirable for tenants, especially job-creating companies in the technology and creative sectors,” said Rob Kane, Lincoln senior vice president.
The property is across the street from the Wilshire Grand Center, a $1 billion mixed-use project being built by Hanjin Group. The 73-story, 1,100-foot-high tower will be the tallest building in the Western United States and feature a luxury, 900-key InterContinental Hotels Group hotel; 67,000 square feet of retail and 677,000 square feet of Class A office space. The project is expected to be completed in 2017.
“This property, already in high demand by tenants, is located in the heart of the most vibrant area for redevelopment in downtown LA,” Tyson Skillings, managing partner at Rockwood Capital, said in a prepared statement. “It will become even more attractive with the nearby addition of a new, world-class hotel tower, restaurants, nightlife and retail. This is a prime example of Rockwood’s investment approach.”
Kane also pointed to the “renaissance” occurring in downtown L.A. and said the area “will only continue to grow and thrive.”
Lincoln recently had a successful property renovation at 800 Wilshire, a 16-story office building that it paid $48.2 million to acquire in 2013 with its capital partner Angelo Gordon & Co. The building was recently sold to the Onni Group for about $80 million, according to the Los Angeles Business Journal. Lincoln also scored with its renovating and repositioning of the Desmond, an 82,000-square-foot building at 11th and Hope streets, that it sold earlier this year to sports and entertainment giant AEG for a reported $48.5 million.
The 415 Wilshire acquisition comes about a month after Lincoln and its joint venture partners, Phoenix Property Co. and Alcion Ventures, sold Runway Playa Vista, a 14-acre mixed-use development in Playa Vista, Calif., to Invesco Real Estate for $475 million. The project, in the works for about a decade, includes 217,000 square feet of retail space, 420 apartments and 33,000 square feet of office space.
Image via Google Street View