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| Union Bank Plaza, 445 South Figueroa Street, downtown Los Angeles, CA |
LOS ANGELES, CA – KBS, one of the largest owners and operators of premier commercial real estate buildings in the nation, announces it has sold Union Bank Plaza, a 675,945 square-foot, Class A mixed-use property located in downtown Los Angeles, California.
The buyer, Waterbridge Capital, purchased the asset for $104 million. In addition the buyer assumed approximately $6 million in committed capital obligations to existing tenants. Union Bank Plaza, at 445 South Figueroa Street, was owned by KBS Real Estate Investment Trust II.
“Union Bank Plaza
was the final building in REIT II, a fund which we are in the process of
liquidating,” says Giovanni (Gio) Cordoves, Western regional president
for KBS.
“The property represents an opportunity for
the buyer to be part of an eventual post-pandemic recovery in downtown Los
Angeles.
"Given
our recent renovations at Union Bank Plaza, the building is well positioned to
attract new tenants with its indoor/outdoor workspaces and other amenities
today’s office users increasingly desire.”
Newmark notes
that despite uncertainty due to the current slower economic climate, the Los
Angeles office market—specifically trophy assets like Union Bank Plaza—could
benefit from a growing return-to-work sentiment from large companies, according
to Tim Helgeson, senior vice president at KBS, who served as asset
manager for the property.
“Los Angeles is a
market known for its resiliency and ability to adapt to shifts in market
dynamics and user preferences,” says Helgeson. “In the case of Union Bank
Plaza, the buyer seized upon an opportunity to own a high-quality mixed-use
asset in a market with strong upside potential within the next several years.”
Designed by L.A.
architect A.C. Martin and built in 1967, Union Bank Plaza comprises a
40-story office tower, a two-level retail center, a two-acre landscaped outdoor
plaza and an ample four-level parking structure.
Shared
amenities at the property include EV car-charging stations, and on-site bank,
carwash/detailing, and storage.
Offering
convenient access to major Los Angeles freeways, shopping, dining, lodging and
entertainment, the asset is named for anchor tenant Union Bank, which has
occupied the building since its construction.
The property
recently underwent a $22 million renovation that includes a remodeled lobby
with upgraded elevator cabs, and improvements to the outdoor plaza that include
fire pits, workspaces and comfortable seating. It has also been designated as
the first skyscraper in Los Angeles to become a historical landmark nominated
by the esteemed Los Angeles Conservancy.
Additionally,
Union Bank Plaza recently achieved The Outstanding Building of the Year (TOBY)
recognition from the Building Owners and Managers Association (BOMA) Greater
Los Angeles.
The
building was honored as the recipient for the 500,000-1 million square feet
Office Building Square Footage category, which highlights overall excellence in
local commercial buildings that have a positive community impact and showcase
emergency preparedness, sustainability, health and wellness and additional
performance metrics.
Kevin Shannon,
Laura Stumm, Ken White and Rob Hannan of Newmark represented KBS in the sales
transaction. Mike Condon of Cushman & Wakefield represented the
buyer.
“KBS did a
terrific renovation of Union Bank Plaza which put it squarely in the Class A
subset. Buying CBD office anywhere in the country right now is a strategy that
provides contrarian investors with a terrific basis advantage.” says Shannon.
According to Bruce
Fischer, Greenberg Traurig’s Co-Chair of the West Coast Real Estate
Practice and Co-Managing Shareholder of the Orange County Office, who led the
Greenberg Traurig team (which included Shareholder Howard Chu and
Paralegal Amanda Kennedy) representing KBS as legal counsel in the
disposition:
“We
were pleased to work with KBS in the disposition of Union Bank Plaza as this
market continues to attract tech and entertainment office users.”
Union
Bank Plaza is located at 445 S. Figueroa Street in Los Angeles, California.
CONTACT:
Arleeny Escarcega
aescarcega@thesmartagency.com
