LOS ANGELES-Beringia Central LLC, a wholly owned US subsidiary of Singapore-based Overseas Union Enterprise Limited, is acquiring the US Bank Tower in Downtown Los Angeles from Library Square Associates LLC, a subsidiary of MPG Office Trust Inc., for $367.5 million. The firm will take possession of the tower and related properties Maguire Gardens and a car-park facility.
Built in 1989, US Bank Tower is a class-A office property at the foot of Bunker Hill. It contains 72 floors of office space and six levels of underground parking, has an area of approximately 1.4 million square feet and rises to 1,018 feet. The tower is approximately 56.3% occupied with a diverse tenant base.
OUE intends to leverage on its strengths in leasing and asset repositioning to increase occupancy and net operating income yield in the asset. The firm has developed expertise from its active lease management o office and retail properties in Singapore. The Singapore focus will continue after this acquisition.
According to OUE's executive chairman Dr. Stephen Riady, “After a successful 2012, OUE is seeking new avenues for growth where value can be identified and realized. We intend to bring out knowledge and network to bear in pursuing new opportunities to generate value for shareholders.”
He added in a prepared statement that the tower is “a well-positioned building that we expect to appeal to a broad base of both local and international office tenants operating in California.”
GlobeSt.com was unable to reach either party before deadline to discuss further details about the deal or its impact on the L.A. office market but will release details as they become available.
As GlobeSt.com reported in November 2012, although the company hasn't stated it directly and as GlobeSt.com previously reported in August and tweeted back in July, there is mounting evidence that MPG Office Trust could sell its office portfolio. MPG's president and CEO David Weinstein revealed during the firm's third-quarter earnings call yesterday that MPG has relieved itself of more than $700 million of debt during the quarter due to sales of key office properties including Glendale Center ($125 million of debt relieved), 500 Orange Tower ($110 million of debt relieved) and Two California Plaza ($470 million of debt relieved).
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
