Downtown LA Office Tower Trades for $80M
Waterbridge Capital has sold Union Bank Plaza, a 701,888-square-foot office tower in Los Angeles. The property traded for $80 million.
Washington Capital Management acted on behalf of the buyer, Southwest Carpenters Pension Trust. The ownership intends to occupy a part of the building and lease the remaining space.
Newmark negotiated on behalf of the seller and also represented Washington Capital Management.
The 40-story office building last traded in 2023, when Waterbridge Capital picked up the asset for $104 million from KBS, in a deal also facilitated by Newmark. At that time, the company received a large lease termination payout from Union Bank, after the tenant merged with U.S. Bank and relocated to U.S. Bank Tower.
READ ALSO: Investors Find Office Bargains
Union Bank Plaza’s tenant roster includes ZWP International, Mitsubishi UFJ Financial Group and Raftelis, among others, according to CommercialEdge data.
A high-rise in downtown LA
Completed in 1967 when it became home to its anchor tenant Union Bank, the Class A property features 27,157 square feet of street-level retail, wrapped around an outdoor courtyard.
Union Bank Plaza went through a $65 million renovation program completed in 2021. The tower now features a redesigned lobby, an upgraded conference center that can accommodate up to 60 people and a renovated outdoor plaza that includes work spaces, fire pits and multiple seating areas. Additionally, the iconic building features six on-site eateries, coffee bars as well as dry cleaning, valet and carwash services.
Located at 445 S. Figueroa St., in the city’s central business district, Union Bank Plaza spans a full city block and has access to interstates 10 and 110. Los Angeles International Airport is 21 miles away.
The Newmark team included Co-Head of U.S. Capital Markets Kevin Shannon, Vice Chairs Ken White, Rob Hannan, Laura Stumm and Michael Moll, Co-President of Global Debt & Structured Finance Jonathan Firestone, Executive Managing Director Bill Bloodgood, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein.
Pricy office deals boost Los Angeles investment volume
Metro Los Angeles led the nation in sale prices, with office assets sold at an average of $437 per square foot, a recent CommercialEdge report shows. The metro’s office sales volume reached $828 million as of August, placing Los Angeles sixth among the best performing metros in the nation. The vacancy rate clocked in at 16.7 percent, up 100 basis points over a 12-month period.
A large deal in Los Angeles closing recently was Fashion Nova’s $118 million acquisition of a 175,000-square-foot office building in Beverly Hills, Calif. The company is moving its global headquarters at the property, which changed hands from Tishman Speyer.
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