KBS, one of the largest owners and operators of premier commercial real estate buildings in the nation, announces it has sold Union Bank Plaza, a 675,945 square-foot, Class A mixed-use property located in downtown Los Angeles, California. The buyer, Waterbridge Capital, purchased the asset for $104 million.
In addition, the buyer assumed approximately $6 million in committed capital obligations to existing tenants. Union Bank Plaza was owned by KBS Real Estate Investment Trust II.
“Union Bank Plaza was the final building in REIT II, a fund which we are in the process of liquidating,” says Giovanni (Gio) 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. Given our recent renovations at Union Bank Plaza, the building is well positioned to attract new tenants with its indoor/outdoor workspaces and other amenities today’s office users increasingly desire.”
Newmark notes that despite uncertainty due to the current slower economic climate, the Los Angeles office market—specifically trophy assets like Union Bank Plaza—could benefit from a growing return-to-work sentiment from large companies, according to Tim Helgeson, senior vice president at KBS, who served as asset manager for the property.
“Los Angeles is a market known for its resiliency and ability to adapt to shifts in market dynamics and user preferences,” says Helgeson. “In the case of Union Bank Plaza, the buyer seized upon an opportunity to own a high-quality mixed-use asset in a market with strong upside potential within the next several years.”
The property recently underwent a $22 million renovation that includes a remodeled lobby with upgraded elevator cabs, and improvements to the outdoor plaza that include fire pits, workspaces and comfortable seating. It has also been designated as the first skyscraper in Los Angeles to become a historical landmark nominated by the esteemed Los Angeles Conservancy.