California’s Tallest Building to Be Acquired for $367.5 MillionChris Spillane
The U.S. Bank Tower in Los Angeles, California’s tallest building, will be bought by Overseas Union Enterprise Ltd. for $367.5 million as the real estate company seeks to expand beyond its base in Singapore.
The office property, owned by a unit of MPG Office Trust Inc., was completed in 1989 and has a height of 1,018 feet (310 meters), OUE said today in a statement. The tower has about 1.4 million square feet (130,000 square meters) of space on 72 floors and six levels of underground parking, OUE said.
“U.S. Bank Tower is a well-positioned building that we expect to appeal to a broad base of both local and international office tenants operating in California,” OUE Executive Chairman Stephen Riady said in the statement.
Downtown Los Angeles has undergone a decade-long revival with developments such as the Frank Gehry-designed Walt Disney Concert Hall on Grand Avenue, which has lured locals and tourists into the area since opening 10 years ago. Even so, city-center office vacancies rose to 17.8 percent in the third quarter from 15.6 percent a year earlier, according to Jones Lang LaSalle Inc.
The U.S. Bank Tower, which was blown up in the 1996 movie “Independence Day,” is 56 percent occupied. It will be succeeded as the tallest in California by a $1 billion office and hotel complex being developed by Korean Air Lines Co. in Los Angeles that’s due to open in 2017.
OUE will acquire the U.S. Bank Tower through Beringia Central LLC, a wholly owned unit. The company is also buying Maguire Gardens and a car-park facility from Library Square Associates LLC, a unit of MPG.