Silverstein Properties has acquired the U.S. Bank Tower in Downtown Los Angeles for $430 million.
Chairman Larry Silverstein said he has full faith in the area becoming a bustling, 24/7 neighborhood in much the same way downtown Manhattan did after 9/11.
“I am thrilled to add this outstanding property to our portfolio,” said Silverstein. “I believe in the future of Downtown Los Angeles. Many of the world’s largest and most innovative companies are headquartered on the west coast.
“The building is centrally located, easily accessible by car and public transportation. And over the past few years, Downtown Los Angeles has started to transform into a 24/7 community, with new residential buildings, restaurants, and bars – much like lower Manhattan in the years after 9/11. It is also home to the city’s top museums, live music venues and sports stadiums.”
This acquisition follows the purchase of 1735 Market Street in Philadelphia and the recent opening of 3 World Trade Center in New York, each the very best office building in their respective cities.
The 1.4 million square foot trophy office building was purchased from Singapore real estate company OUE Ltd.
The U.S. Bank Tower was designed by Pei Cobb Freed & Partners and built in 1989 by Maguire Properties. Located near the Pershing Square Metro station, it is the second tallest tower in Los Angeles at 1,018 feet, and one of the most prominent buildings on the city skyline.
Tenants of the LEED Gold-certified property include U.S. Bank, Lewis Brisbois Bisgaard & Smith LLP, Thompson Reuters, and Marsh USA.
Since 2013, the property has undergone a $60 million capital improvement program. Silverstein plans to invest in a “comprehensive capital improvement program” to produce “a creative office campus in a vertical urban environment.”
The program will include designing and managing new amenity spaces and common areas, new destination dispatch elevators, as well as introducing INSPIRE, its hospitality-focused tenant experience program and mobile app designed to help tenants get the most out of their workday.
“Downtown Los Angeles is a vibrant and growing market,” said Jeff Grasso, Head of Acquisitions for Silverstein Properties. “It is home to a diverse mix of companies that are attracted by its central location, new housing, and easy access. It also benefits from Los Angeles’ comprehensive Metro plan that envisions Downtown as the hub.”