LOS ANGELES—AXA Investment Managers – Real Assets has acquired a 49% stake in 5900 Wilshire, a 425,000-square-foot office building in the Miracle Mile neighborhood of Los Angeles. In acquiring partial ownership in the property, the investor has entered into a partnership with the property's current ownership, Prudential Real Estate Investors and the Ratkovich Co., the property manager. AXA purchased its stake in the property from Prudential, which decreased its interest in the building.
“Our partnership has owned 5900 Wilshire since 2005,” Clare De Briere, EVP and COO of the Ratkovich Co., tells GlobeSt.com. “With the building 95% occupied, we felt like the time was right to go to the market for a partial interest sale in the building. We believe that there is still a lot of value to be created in this building and we want to stay in ownership for the long term.” The value of this recapitalization transaction was not disclosed; however, the partnership purchased the property for $102 million in 2005, according to industry sources.
The owners were looking for a like-minded institutional partner to purchase a stake in the property, and AXA was an ideal fit. “AXA Investment Managers – Real Assets, like Prudential Real Estate Investors, is an institutional investor which values, premiere, world-class, core assets,” says de Briere. “They recognized the incredible value that had been created at 5900 Wilshire, and the value that is yet to be realized – with the transportation infrastructure that is being built as well as the incredible investment in the arts at LACMA, the recently renovated Peterson Automotive Museum and the forthcoming Academy Museum of Motion Pictures.”
The 31-story property is currently leased to sbe, which has building signage, the Sundance Institute and Edelman, a marketing and communications firm. Since acquiring the property in 2005, the owners have executed a $34 million renovation and secured LEED Gold certification for the property. De Briere says that going forward, the company is focused on completing a lease up at the property.
LOS ANGELES—AXA Investment Managers – Real Assets has acquired a 49% stake in 5900 Wilshire, a 425,000-square-foot office building in the Miracle Mile neighborhood of Los Angeles. In acquiring partial ownership in the property, the investor has entered into a partnership with the property's current ownership, Prudential Real Estate Investors and the Ratkovich Co., the property manager. AXA purchased its stake in the property from Prudential, which decreased its interest in the building.
“Our partnership has owned 5900 Wilshire since 2005,” Clare De Briere, EVP and COO of the Ratkovich Co., tells GlobeSt.com. “With the building 95% occupied, we felt like the time was right to go to the market for a partial interest sale in the building. We believe that there is still a lot of value to be created in this building and we want to stay in ownership for the long term.” The value of this recapitalization transaction was not disclosed; however, the partnership purchased the property for $102 million in 2005, according to industry sources.
The owners were looking for a like-minded institutional partner to purchase a stake in the property, and AXA was an ideal fit. “AXA Investment Managers – Real Assets, like Prudential Real Estate Investors, is an institutional investor which values, premiere, world-class, core assets,” says de Briere. “They recognized the incredible value that had been created at 5900 Wilshire, and the value that is yet to be realized – with the transportation infrastructure that is being built as well as the incredible investment in the arts at LACMA, the recently renovated Peterson Automotive Museum and the forthcoming Academy Museum of Motion Pictures.”
The 31-story property is currently leased to sbe, which has building signage, the Sundance Institute and
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