Madison Buys 49% Interest in Downtown LA Office Tower

Madison International Realty has acquired a 49 percent ownership interest in One California Plaza, a 42-story trophy office tower in downtown Los Angeles, for $295 million.

373px-One_California_Plaza

Madison International Realty, of New York, has acquired a 49 percent ownership interest in One California Plaza, a 42-story trophy office tower in downtown Los Angeles, for $295 million, the company announced Wednesday.

The seller was an affiliate of Beacon Capital Partners L.L.C. that continues to hold the remaining majority interest and will continue to manage the property.

One California Plaza totals 1,039,449 square feet, includes a five-level underground parking garage and is LEED-Gold certified. Designed by Arthur Erickson Architects, it was completed in 1985. The 2.23-acre site also features a 1.5-acre water court that provides multilevel public spaces with outdoor seating.

(The building is part of the larger California Plaza project, which also includes the 54-story Two California Plaza office tower, the Los Angeles Museum of Contemporary Art, Colburn School of Performing Arts and Los Angeles Omni Hotel.)

“There have been no new office towers constructed in downtown Los Angeles in 20 years,” Ronald  Dickerman, president of Madison International Realty, noted in a release.

The building’s location, at 300 S. Grand Ave. in downtown L.A.’s Bunker Hill district, is only about two blocks from the Los Angeles Superior Court’s Stanley Mosk Courthouse, Dickerman told Commercial Property Executive, which makes the building popular with major law firms. “It does create a bit of a franchise.” (The courthouse is reputedly the largest in the United States.)

One California Plaza’s tenants include Bank of the West; Skadden, Arps, Slate, Meagher & Flom L.L.P.; and Morgan Lewis & Bockius.

Also important, Dickerman pointed out, is the building’s long-term leases. Only about 20 percent of the current lease roll will turn over before 2020.

Another factor in the building’s favor, he added, is that with office rents rising in West L.A. and Santa Monica, “the pendulum is swinging a bit back toward downtown.”

The building’s location, at 300 S. Grand Ave. in downtown L.A.’s Bunker Hill district, is only about two blocks from the Los Angeles Superior Court’s Stanley Mosk Courthouse, Dickerman told Commercial Property Executive, which makes the building popular with major law firms. “It does create a bit of a franchise.” (The courthouse is reputedly the largest in the United States.)

One California Plaza’s tenants include Bank of the West; Skadden, Arps, Slate, Meagher & Flom L.L.P.; and Morgan Lewis & Bockius.

Also important, Dickerman pointed out, is the building’s long-term leases. Only about 20 percent of the current lease roll will turn over before 2020.

Another factor in the building’s favor, he added, is that with office rents rising in West L.A. and Santa Monica, “the pendulum is swinging a bit back toward downtown.”