KBS Sells Union Bank Plaza Office Tower in Downtown Los Angeles for $104M

by Kristin Harlow

LOS ANGELES — KBS has sold Union Bank Plaza, an office tower totaling 675,945 square feet in downtown Los Angeles. The buyer, Waterbridge Capital, purchased the asset for $104 million and assumed approximately $6 million in committed capital obligations to existing tenants.

Designed by local architect A.C. Martin and built in 1967, Union Bank Plaza comprises a 40-story office tower, two-level retail center, two-acre landscaped outdoor plaza and four-level parking structure. Amenities include electric vehicle car charging stations, storage areas, an onsite bank and carwash.

Located at 445 S. Figueroa St., the asset is named for anchor tenant Union Bank, which has occupied the building since its construction and leases 30 percent of the property. At the time of sale, the building was 62 percent leased.

The property recently underwent a $22 million renovation, including a remodeled lobby with upgraded elevator cabs as well as improvements to the outdoor plaza that include fire pits, workspaces and new seating.

Union Bank Plaza is the first skyscraper in Los Angeles to become an historical landmark nominated by the Los Angeles Conservancy. It also recently achieved The Outstanding Building of the Year (TOBY) recognition from the Building Owners and Managers Association (BOMA) Greater Los Angeles.

Kevin Shannon, Ken White, Rob Hannan, Laura Stumm, Michael Moll and Alex Beaton of Newmark represented KBS in the sale. Mike Condon of Cushman & Wakefield represented the buyer.

“Union Bank Plaza was the final building in REIT II, a fund which we are in the process of liquidating,” says Giovanni Cordoves, Western regional president for KBS. “The property represents an opportunity for the buyer to be part of an eventual post-pandemic recovery in downtown Los Angeles.”

Though down from pre-pandemic levels, Los Angeles was the second-leading U.S. market for volume of office investment sales in the fourth quarter of 2022, according to Newmark. The Los Angeles market trailed only Manhattan.

Newport Beach-based KBS and its affiliated companies have completed transactional activity of more than $44.7 billion on behalf of private and institutional investors globally.

Waterbridge Capital is a New York City-based real estate investment firm with more than 3 million square feet of assets under management valued at a market capitalization of over $2 billion.

— Kristin Harlow

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