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12/15/16
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CRA/LA, the successor organization to the Community Redevelopment Agency of the City of Los Angeles, has sold the ground leased fee land parcels totaling six acres underneath the One and Two California Plaza office towers in downtown Los Angeles for over $100 mil. The two investments, which had been offered for public sale in conjunction with the liquidation of 52 assets held by CRA/LA, were acquired separately by the owners of the high-rise towers that were leasing the land parcels.
The Cushman & Wakefield team led by Marc Renard, Manfred Schaub, and Jimmy Chai of the firm’s Downtown Los Angeles office served as the exclusive advisor to the CRA/LA for the portfolio including the Cal Plaza land dispositions. The buyers in both deals were self-represented.
“These are two of the most significant land parcels ever offered for sale in Downtown Los Angeles,” said Renard, Executive Vice Chairman of Cushman & Wakefield’s Capital Markets Group. “The bond-like nature of the 66-year ground leases and the extraordinary collateral of the office towers generated global investor interest in this offering.”
Beacon Capital Partners purchased the 2.4-acre land parcel under One Cal Plaza for $33 mil. The site improvements at One California Plaza comprise a prominent 42-story office tower and a six-level, subterranean parking garage located at 300 South Grand Ave. Built in 1985, the property totals 1.04 msf and houses such tenants as AECOM, Skadden Arps, Morgan Lewis, Nixon Peabody, and Bank of the West.
The 3.6-acre land parcel under Two Cal Plaza was acquired by CIM Group for $70 mil. The site improvements at Two California Plaza comprise a 1.33 msf, 52-story office landmark built in 1992, a 44k sf retail plaza, and a six-level subterranean parking garage located at 350 South Grand Ave. Tenants at the property include Mayer Brown, Constellation New Energy, Merrill Lynch, Reliance Steel, Mizuho Bank, BlackRock, and the Consulate General of Japan.
The two sites are an integral part of the master-planned California Plaza development, which is the centerpiece of one of the most recognized skylines in the nation. Other developments within the California Plaza master plan are the Los Angeles Museum of Contemporary Art (MOCA), the Omni Hotel, the Colburn School of Performing Arts, the Museum Tower luxury residential tower, and a 1.5-acre water court.
The CRA/LA portfolio had contained a total of 52 commercial and residential properties located in prime, urban infill Los Angeles districts including Downtown Los Angeles, Hollywood, and the North Hollywood Arts District. The initial launch of the disposition of assets began July 15, 2015. The sale of CRA/LA properties represents the conclusion of a legislative mandate to terminate redevelopment agencies across the state of California. Other primary assets involved in the public disposition included the ArcLight Hollywood Parking Structure, which recently sold for $50 mil.
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