Ivanhoe Venture Enters Los Angeles Market With Office PurchaseBy
Partnership pays $200 million for PacMutual complex downtown
Three beaux arts-style buildings in financial district's core
An Ivanhoe Cambridge venture bought the PacMutual office complex in downtown Los Angeles for about $200 million, the partnership’s first acquisition in the California city.
Ivanhoe, a unit of pension fund Caisse de Depot et Placement du Quebec, teamed with Callahan Capital Properties on the purchase of the three interconnected buildings, which have a total of 464,000 square feet (43,000 square meters), the companies said today in a statement.
The PacMutual complex, at 523 W. Sixth St., is at the core of Los Angeles’ financial district and is close to the Seventh Street retail corridor, the Staples Center arena, and the residential neighborhood of South Park. Each of the beaux arts-style buildings, built from 1908 and 1926, has high ceilings and open floor plans, according to the statement. The property also includes an underground garage with 289 spaces.
“Downtown Los Angeles has seen a remarkable renewal and truly represents a modern ‘live-work-play’ sector of the city,” Arthur Lloyd, executive vice president at Montreal-based Ivanhoe, said in the statement. “PacMutual’s location, quality and appeal for the creative economy align remarkably with our long-term investment strategy in key cities in the United States.”
Ivanhoe has been working with Chicago-based Callahan to increase its U.S. real estate investments. In January, the venture bought 1095 Avenue of the Americas, a 42-story office tower on Manhattan’s Bryant Park, for $2.2 billion. At the time, the purchase, from Blackstone Group LP, was the biggest of a single office building since 2008, according to research firm Real Capital Analytics Inc.
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