Hines, the closely held property investor with $22.9 billion in assets, plans to sell the 40-story Union Bank Plaza office tower in downtown Los Angeles.
The company hired Jones Lang LaSalle Inc. to market Union Bank Plaza, a 625,838-square-foot (58,142-square-meter) tower it purchased in 2005, said Kim Jagger, a spokeswoman for Houston- based Hines. The building is almost 95 percent occupied, with about 56 percent leased by Union Bank of California, she said.
The building may sell for more than $200 million, said two people with knowledge of the sale process, who asked not to be named because the price hasn’t been made public. Jagger wouldn’t comment on how much Hines is seeking.
A transaction of that size would be the biggest office sale in Los Angeles since the 48-story Citigroup Center went for $280 million in September 2008, said Dan Fasulo, managing director at Real Capital Analytics Inc., a property-research company in New York. Hines was the buyer in that deal, and the seller was Broadway Partners.
Hines may be able to find a buyer at $200 million, or about $320 a square foot, for Union Bank Plaza, Fasulo said.
“Hines doesn’t usually put things up for sale unless they’re sure they can sell them,” he said.
Union Bank’s lease runs through 2022, according to Jagger. Other tenants include the California Community Foundation, a philanthropic organization, and the law firms of Nossaman LLP and Mendes & Mount LLP, according to Hines’s website.
The Hines portfolio has more than 1,100 properties including skyscrapers, corporate headquarters, mixed-use projects, industrial parks, medical buildings and master-planned residential and resort communities, according to the website.
Hines bought Union Bank Plaza from Walton Street Capital LLC, a Chicago-based private-equity real estate investment firm, in March 2005 for $143 million, or about $228 a square foot, Fasulo said.