LOS ANGELES — An affiliate of KBS Cos. has acquired Los Angeles' trophy Union Bank Plaza from Hines for $208 million. KBS REIT II, the acquiring entity, is funding the purchase with a $119.3 million loan, which carries a 5-year term with interest-only payments and an interest rate fixed at 3.44 percent.
The 40-story, 627,334-square-foot office tower is located at 445 S. Figueroa St. in the Bunker Hill section of downtown Los Angeles. It was constructed in 1967 and originally served as the West Coast headquarters for Connecticut General Life Insurance Co. Currently, Union Bank is the anchor tenant, occupying 55 percent of its leasable space through 2022. Overall occupancy is 96 percent. Amenities at the property include a two-level, 19,817-square-foot retail plaza, a large outdoor plaza and a 914-space parking garage.
Michael Zietsman and David Doupé of the Los Angeles office of Jones Lang LaSalle represented Hines in the deal. KBS Capital Advisors represented KBS REIT II.
“When we acquired Union Bank Plaza in 2005, it represented one of the largest investments made in our U.S. Office Value Added Fund,” said David Congdon, senior vice president and fund manager for Hines. “By renewing and expanding the property's anchor tenant, as well as improving the quality of the asset through renovations and operational improvements including energy efficiences, we added significant value and realized exceptional investment performance.”
“Union Bank Plaza is perfectly positioned to benefit from the ongoing renaissance of downtown L.A., resulting from a $15 billion infusion of public/private investment responsible for the creation of such mixed-use complexes as L.A. Live, The Grand and various urban residential developments,” said Christopher Aust, senior vice president and regional director of acquisitions for KBS.
— Coleman Wood