LOS ANGELES—Intercontinental Real Estate Corp. and the Swig Co. have teamed up to purchased 6300 Wilshire Blvd., a 408,000-square-foot class-A office building in the Miracle Mile district of Los Angeles. The purchase price and the name of the seller were not disclosed, however industry sources unrelated to the deal say that the joint venture purchased the property for $150 million from Legacy Partners.

Both buyers agreed that this was a rare and well-located office asset. “We are excited to add to our Los Angeles office portfolio. We felt this was a great office asset centrally located in the Miracle Mile area,” Jessica Levin, director of acquisitions at Intercontinental, tells GlobeSt.com. “We liked the credit tenancy and thought it was diverse; we have media, entertainment and legal all on the roster. We also thought it was in excellent proximity to a wide variety of amenities and a broad labor pool. Plus, the views are absolutely spectacular with views of the Hollywood Hills and the Wilshire corridor.” Tomas Schoenberg, EVP of investments at the Swig Co., adds, “This is a great physical product and really checked all of the boxes. It has great floor plates; great window lines, great views; great parking and a lobby with a lot of potential that we hope to realize. These types of assets don't trade very frequently and this transaction allows us to buy a major asset in Los Angeles, further our brand presence in the market and really grow our portfolio there.”

Located at 6300 Wilshire Blvd., the 22-story property includes a six-story parking garage with 950 parking stalls and is located in a recently revitalized area of Miracle Mile. The buyers plan to renovate the building and increase the occupancy. Although they would not comment on the amount of capital that they plan to invest, they did say that it would be a meaningful amount. “We intend to add some additional capital into the building, including updating the lobbies and the exterior. We hope to jumpstart the leasing at the building that was perhaps a little bit stalled because the owner was in sale mode,” says Schoenberg. “We tend to have a long-term view of the markets that we are in, and Intercontinental shares that view. I think we are both looking at this today as a long-term investment.”

The two buyers purchased the property in a fully marketed transaction, and said that there was strong competition for the property from other investors. “We were quite aggressive in bidding for the property both in price and terms, but ultimately we believe we won the deal because the seller had a high degree of confidence that we could do what we said, perform on the deal and bring it to the finish line,” says Schoenberg.

This is not unusual. Competition for office assets has been increasing thanks to the improving market. A recent office-sector report from Lee & Associates shows that the office sector is its healthiest in years with national vacancy rates at 10.9%.