With the popularity of the Downtown market, it is likely that there will be many investors interested in these transactions. Renard did not tell GlobeSt.com the level of interest he has received or the anticipated pricing for the sites, but it is likely a high price tag, especially considering the popularity of downtown and the value of the skyscrapers. Madison International bought a 50% interest in One California Plaza for $295 million in 2013, while CIM Group purchased Two California Plaza out of a troubled situation in 2014 for $300 million.

LOS ANGELES—The land beneath One and Two California Plaza is coming to market in what could shape up to be one of the biggest L.A. deals this year. CRA/LA as the successor to the California Redevelopment Agency of the City of Los Angeles, and is required by law to sell the sites, which are the largest in its portfolio, at fair market price. Cushman & Wakefield is bringing the deal to market, and has handled 50 other transactions from the disposition.

“Offerings like this are extraordinarily rare as owners of such sites seldom sell as the durability of the cash flow is unparalleled in the capital markets,” Marc Renard, vice chairman and executive managing director at Cushman & Wakefield, tells GlobeSt.com. “As a result we expect global interest and a very competitive process. The Sites will be sold through a public sale process to the highest bona-fide offers.” Renard is representing the sellers along with Cushman & Wakefield's Jimmy Chai and Manfred Schaub.

The land site, known as California Plaza, totals 6 acres, and has houses two skyscrapers that total more than 2 million square feet in Downtown Los Angeles. The 42-story One California Plaza sits on 2.4 acres and totals 1.1 million square feet, while the 52-story Two California Plaza sits on 3.6 acres and totals 1.3 million square feet. Both sites have long-term ground leases.

One and Two California Plaza will bring in stable income, and, as a result, are ideal for a long-term holder. “Since the sites generate long-term income akin to an investment grade credit bond while offering significant value appreciation potential they appeal to long term investors such as family trusts, off-shore investors and certain institutional investors,” adds Renard.

With the popularity of the Downtown market, it is likely that there will be many investors interested in these transactions. Renard did not tell GlobeSt.com the level of interest he has received or the anticipated pricing for the sites, but it is likely a high price tag, especially considering the popularity of downtown and the value of the skyscrapers. Madison International bought a 50% interest in One California Plaza for $295 million in 2013, while CIM Group purchased Two California Plaza out of a troubled situation in 2014 for $300 million.