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4/03/23
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In a significant Downtown Los Angeles office acquisition, Waterbridge Capital purchased Union Bank Plaza, a 40-story, 701.9k sf high-rise located at 445 S. Figueroa St, in a deal worth roughly $111 mil ($158/sf). The Class A building sits on a sizeable, 3.6-acre parcel that covers an entire city block.
The most recent sale efforts for the property were launched in 2021 with reports that the property could fetch as much as $250 mil. The seller, Harbor Associates, placed the deal under contract in May 2022 for $165 mil but dropped the deal a few months later. Ultimately, the deal closed with Waterbridge on March 30, 2023.
Waterbridge financed the purchase with an acquisition loan of $75 mil. The financing was arranged by Sean Fulp, Mark Schuessler, Ryan Plummer and Jason Roth of Colliers and sourced through Los Angeles-based BH Properties. Kevin Shannon, Rob Hannan, Laura Stumm and Ken White with Newmark brokered the sale.
Over the last several months, office fundamentals in central business districts have softened, and investor and lender appetite for office assets has shrunk. To complicate sale efforts further, Los Angeles’ Measure ULA, which increases transfer taxes by 5.5% on transactions over $10 mil, was scheduled to go into effect on April 1, 2023, putting increased pressure on the sale to close before the end of March.
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