Work got under way this month to transform a vacant, dilapidated concrete bank building near L.A. Live into a state-of-the-art office and retail complex with glass walls.
L&R Group of Cos. is punching out the five-story building’s drab walls and replacing them with full-length glass plates. It’s also redesigning the ground floor for shops and restaurants.
The last time new office space became available downtown was three years ago when the L.A. Live project opened with roughly 150,000 square feet.
The 845 S. Figueroa St. building will have nearly that much: 140,000 square feet on four floors expected to come on line in the first quarter of next year. The project is being designed by LeanArch, an architecture firm near downtown.
L&R, which is downtown’s largest parking lot and garage owner with 72 properties, bought the building for $18 million in 2004 but had not occupied it. It was acquired from Union Bank of California, which used it for administrative offices.
L&R is moving its headquarters into 10,000 square feet at the top of the building, where the design is intentionally reminiscent of a parking structure, with thick steel support beams and corrugated metal on the walls.
No tenants have inked lease deals yet. But building broker John Zanetos, of West L.A.’s CB Richard Ellis Group Inc., said that it could be attractive to a variety of businesses.
“I can see this building attracting creative users because of the boutique nature of the building, but at the same time I can see it attracting a multifloor financial services or traditional business that occupies downtown,” Zanetos said.
Monthly asking rates begin at $2.50 per square foot. No tenant has been signed for the 31,000-square-foot ground floor, which L&R is hoping will be taken by one large user.
“Restaurant space is definitely an option. We’d love to talk to all grocery stores,” Zanetos said.
An L&R executive was not made available for comment.
Insurance Deal
In more downtown activity, L.A.’s largest insurance brokerage, Aon Insurance, will likely stay put on “Insurance Row,” though it will shrink in size.
Last week, the Chicago company was in negotiations to close on a 77,000-square-foot lease renewal – but that means it would give back two full floors, or about 32 percent of its space.
The new 15-year lease gives the company four floors at the 62-story Aon Center, 707 Wilshire Blvd., and allows it to keep its building-top signage. Financial terms were not disclosed.
The firm is among many insurance companies in the area, including American International Group Inc. Just a few months ago, Zurich North America announced it was moving to downtown from Glendale.
Aon’s downsizing can in part be attributed to a restructuring of the company, which last year merged with human resource management consulting firm Hewitt Associates. Aon announced 1,500 layoffs, and the closing of various offices and operations over the next three years. It expects to take a $325 million charge for the restructuring.
Landlord Beacon Capital Partners is represented by Lincoln Property Co. Vice President Andy Fishburn. Aon is represented by Transwestern Executive Managing Director Jonathan Larsen.
Movie Premiere
Regency Theatres has taken over the multiplex at Van Nuys’ Plant shopping center from Mann Theatres.
The 10-year, 72,200-square-foot lease, valued at $17 million, gives Regency, a family-owned and -operated company in Calabasas, three theaters in the San Fernando Valley and seven Los Angeles County-wide.
Mann operated the 16-screen theater since it opened in 1999 but the struggling company has been shedding properties.
The is the second deal Regency has cut with property owner Decron Properties Corp., an L.A. real estate investment firm with a $1.3 billion portfolio. In 2007, Regency signed on to manage a multiplex in Huntington Beach.
“I believe the sales will grow dramatically under Regency. I think that they will cater better to the Latino community with many more films with Spanish subtitles.” said Decron Chief Executive David Nagel.
Regency President Lydon Golin said his company plans to show Latino-oriented and Spanish-subtitled films in the complex, which is in a heavily Latino community. It also will be making cosmetic upgrades to the theaters and has already added some of its signature D-Box seats, which shake and move along with on-screen action.
Golin said there were no plans to take over other Mann operations but that his company is exploring expansion opportunities.
Staff reporter Jacquelyn Ryan can be reached at [email protected] or (323) 549-5225, ext. 228.
