CBRE Sells Site For $330M

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CBRE Global Investors has sold its parent company CBRE’s headquarters in downtown for $330 million after bringing it to nearly full occupancy and making numerous renovations.

“It’s been a very, very positive outcome for CBRE Global Investors and the clients they represent,” said Lew Horne, president of the CBRE’s brokerage services for Los Angeles and Orange County.

The investment division of L.A.-based brokerage CBRE bought the 26-story site in 2012 for $238 million from Tishman Speyer of New York, when it was 81 percent leased. The building is now at 93 percent occupancy. CBRE took over the top two floors of the property in 2013, transforming a former storage space into a cutting-edge creative office. CBRE also brought in two ground-floor restaurants, enhanced the parking facilities, added a bike room, created a video conferencing center, and secured the LEED Gold environmental ranking.

The buyer is a partnership between Pittsburgh’s PNC Financial Services Group and GLL Real Estate of Munich.

“It’s another positive sign in terms of people accepting and believing what’s going on in downtown L.A.,” said Kevin Shannon, a broker who worked on the deal for CBRE with Todd Doney, John Zanetos, and Michael Longo. Shannon has since joined brokerage Newmark Grubb Knight Frank.

The building’s tenant roster that includes Capital Group Cos. Inc., O’Melveny & Myers and CBRE made it especially attractive to the buyers.

“It’s hard to find a better credit-tenant rent roll than you have a 400 S. Hope,” Shannon said.

The transaction was first reported in The Real Deal.

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