LOS ANGELES-Walter Conn, the chairman of Charles Dunn Co., has acquired the remaining 50% interest in the 213,816-square-foot Pacific Financial Center office tower from Florida-based Equity One, with which he had been a 50% owner, for $50 million. Conn is now full owner in the 17-story office tower at 800 W. Sixth St. in a transaction that is third-largest acquisition this year in the Downtown Los Angeles market.
Built in 1972 the Pacific Financial Center has been the headquarters of Dunn since 1997. Conn had been a 50% owner in the property along with Equity One, which is a REIT based in North Miami Beach, FL. The deal involved what is described as "an intricate loan assumption process," in an announcement by Conn regarding the acquisition. According to an announcement from Equity One, Conn assumed a $19.2 million mortgage on the property.
John Anthony of Charles Dunn Company represented Conn in the transaction. Kevin Shannon of CB Richard Ellis represented Equity One.
Conn, commenting on the transaction, said, “Charles Dunn Co. is committed to an aggressive expansion over the next several years in the Los Angeles area as well as throughout California and Arizona. This acquisition is testament to that growth.”
In early July, Equity One decided to sell its half interest in the property, and Conn went along with his partner’s wishes to place it on the market. By mid-July there were 11 offers, the majority of them from foreign investors. Three of the offers were above the asking price, and Conn decided to exercise his first right of refusal at that point to purchase the partner’s interest.
Over a 15-day span, Charles Dunn Co.'s acquisition team worked through the complicated loan assumption approval process; worked to internally raise the funds to close; and negotiated and finalized the sale.
Anthony played a key role not only in negotiating the terms of the purchase, but in advising throughout the negotiations. Nathan Ung, Charles Dunn Co.’s senior asset manager, worked with legal on both sides of the transaction as well as the title company; and Marcelo Bermudez of Figueroa Capital Group, Charles Dunn Co.’s capital markets arm, worked to push through the assumption negotiations.
The building is approximately 93% occupied and has been leased and managed by Charles Dunn Co. since the early 90s. The company occupies the fifth and sixth floors totaling approximately 25,000 square feet. Other key tenants include Lend Lease Inc., Gerald J. Sullivan & Associates and CP Document Technologies LLC.
The building is currently undergoing a major lobby and elevator renovation as well as a build-out of new restaurant space on the ground floor.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
