The property had been owned since 1997 by a joint venture comprised of Whitehall Street Real Estate Limited Partnership VII and TrizecHahn Corp., Trizec's predecessor company.Trizec completed the acquisition through a tax-efficient reinvestment of proceeds from the recent sale of Perimeter Woods, a property located in Charlotte, NC. Goldman Sachs provided Trizec's $120-million mortgage.
Ernst & Young Plaza anchors Downtown at the intersection of 7th and Figueroa streets. Designed by Skidmore, Owings & Merill, the class A office tower was completed in 1985 and includes 330,000 sf of retail space. A source at Trizec tells GlobeSt.com the office space is 90% leased and the retail occupancy rate--thanks to a lot of vacant department store space--is "a lot lower."
Michael Escalante, Trizec's SVP of capital allocations and business development, says the company's portfolio strategy "calls for continued investment in our primary markets, while reducing ownership in secondary markets."
"Another company source tells GlobeSt.com that "for quite some time we have been impressed with the potential for Downtown and the progress it was making, and wanted to increase our exposure and even after this we would like to look at some additional deals."
Trizec reformed as a U.S.-based REIT in May. Trizec's holdings inside the US include a stake in Chicago's Sears Tower and full ownership of the Watergate office building in Washington, DC Trizec's holdings outside the US were taken over by sister company Trizec Canada, which is planning to unload the assets. Trizec Canada owns 40% of Trizec Properties' shares.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
