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12/18/20
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Deka Immobilien, a global real estate investment company based in Germany, is closing out the year with the off-market purchase of 915 Wilshire, a 22-story, 388.1k sf Class A office building in the heart of Downtown Los Angeles’ financial district. The tower was sold by Rockwood Capital and Lincoln Property Company West.
Although a price was not given out, industry sources tell us the deal probably came in near $195 mil, which would work out to about $500/sf.
The building, located at 915 Wilshire Blvd, recently underwent a comprehensive renovation. Features include sweeping skyline views, highly efficient, 23k sf floor plates, an upgrapded lobby, open-air mezzanine rooftop deck, elevator cabs, building signage and a nearly complete full service bar and restaurant. The building was 90% leased at the time of sale to 30 tenants spanning a variety of sectors, including professional and financial services, entertainment, insurance, law, healthcare and government.
The property is directly adjacent to the 110 Fwy, blocks away from the 7th Street Metro Station and presents optimal ingress and egress for all modes of transportation. With immediate proximity to dozens of top-rated restaurants, bars and hotels, including the neighboring Wilshire Grand, the asset offers tenants one of Downtown LA’s most central and accessible locations.
Newmark’s Co-head of Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Laura Stumm represented the sellers in the transaction. Newmark’s Vice Chairman David Milestone led the financing effort for the deal.
“This is yet another example of foreign capital buying Class A office assets in gateway markets with credit and attractive lease terms,” said Shannon. “The weighted average lease term on 915 Wilshire was over eight years and the rent roll was anchored by a GSA 15-year lease for nearly a third of the property.”
White added, “915’s above average parking ratio compared to other DTLA office assets will be valuable post pandemic as more employees will likely opt to drive downtown initially.”
According to Newmark Research, Downtown Los Angeles has a number of long-term selling points, including being at the center of the metro’s transit system; substantial multi-housing development in recent years; an evolving amenity base, available office space for expansion or consolidation; and lower office rents than most West Los Angeles areas.
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