LOS ANGELES-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement this morning, but GlobeSt.com has learned that a CBRE Global Investors fund has acquired 400 S. Hope Street, a 26-floor trophy-quality office building in Downtown Los Angeles.
Although sources involved did not disclose a purchase price or further information to GlobeSt.com by deadline, a source not involved in the deal tells GlobeSt.com that the seller was a JV between BlackRock Realty and Tishman Speyer Office Fund and the price was approximately $238.4 million or $340 per square foot.
The purchase was made for the CBRE Strategic Partners US strategy. The CBRE Strategic Partners US team plans to work to increase the building’s value through an aggressive marketing/branding program. Enhancements will include the implementation of the Strategic Partners’ signature five-Star Worldwide amenity suite. Additionally there are plans for a ground floor restaurant and LEED certification among other upgrades.
The 701,535-square-foot building on the corner of 4th and Hope streets is 81% leased to high-quality tenants on primarily long-term leases. The building features a recently renovated lobby with high-end finishes, subterranean parking, a unique top-of-building vacancy as well as significant building signage opportunities.
“Downtown Los Angeles is a market that is experiencing rapid transformation,” explains Vance Maddocks, president of CBRE Strategic Partners US. “It is becoming a live/work/play environment comparable to other west coast CBDs with over $17 billion in entertainment and infrastructure improvements over the past decade. Since 2008, the area has seen an influx of new business activity in keeping with the growing demands of employees and residents. We believe our strength of ownership and aggressive repositioning program, coupled with the dynamics of the market, will make 400 S. Hope attractive to prospective tenants.”
Representing the seller were CBRE’s Todd Doney, Brokerage Office Properties vice chairman; John Zanetos, Brokerage Office Properties VP; and Todd Tydlaska, Investment Properties Director.
“Nationally, investment capital this cycle has clearly preferred CBD product like 400 S. Hope in gateway coastal markets,” says Kevin Shannon, CBRE Western Division Institutional Group vice chairman and managing director, who represented the seller in the transaction. “Ongoing and forecast demographic and market fundamental trends clearly favor these types of vibrant CBD markets.”
UPDATED 7/23/12
CBRE’s Capital Markets group arranged $150 million in financing on behalf of CBRE Global Investors for the acquisition. Val Achtemeier of CBRE Debt & Equity Finance arranged the interest-only loan through MetLife. The loan term is for five years with a one-year option to extend.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
