Brickman, a New York real estate private equity firm, has purchased the office building at 915 Wilshire Blvd. from Lincoln Property Co. for $117 million.
The 385,455-square-foot Class B building at Wilshire Boulevard and Figueroa Street is 88 percent leased, according to Mike Bernstein, executive vice president at Brickman. The General Services Administration is a key tenant at the 22-story building.
“We are very excited about all the characteristics in downtown Los Angeles,” Bernstein said. “From L.A. Live, to the new hotels, to the residential units being built in the center of the city it will all bode well for a 24/7 experience in downtown.”
Bernstein said he considers the building a “Class A-minus” asset. He said Brickman is looking to upgrade common areas and improve “the parking experience” at the building. “There’s an opportunity to capture what we project to be rent growth,” he said.
The deal, which breaks down to about $304 per square foot, closed on Feb. 7. Dallas-based Lincoln Property received about 20 offers on the property.
“Capital right now loves downtown and the Central Business District. And anything that is selling downtown, you are getting 12 to 20 bids,” said Kevin Shannon, a vice chairman at CB Richard Ellis Group Inc. who represented both sides of the deal. “Capital loves the resurgence and the revitalization, and everything that is going on down there.”
Both parties were also represented by CB Richard Ellis Vice Chairman Todd Doney, Senior Vice President Tom Bohlinger and Vice President Todd Tydlaska.
Downtown Listing
The Bristol Group Inc., a real estate investment and development firm, has put 1055 W. Seventh St. on the market and the 32-story Class A office building is expected to sell for over $200 million, or more than $325 per square foot.
CB Richard Ellis’ Shannon, who has the listing, declined to comment on pricing, but the 615,000-square-foot building could easily sell in the $200 million range because even Class B buildings are trading at over $300 a foot.
“The momentum that downtown has with the capital markets is going to carry over to this building,” Shannon said.
The building, which is 73 percent occupied, was built in 1988 and sits on a 1.4 acre site. It is expected to attract multiple offers, including possibly from Brickman.
“We are taking a hard look at it,” said Bernstein, of Brickman. “It’s a good quality product with a downtown location with an upside.”
Doney, Bohlinger and Tydlaska also have the listing.
El Segundo Upgrades
Barker Pacific Group Inc. will spend $30 million to renovate the former Xerox Centre office building at 101 Continental Blvd. in El Segundo, now that it has locked up the land underneath.
Late last month, Barker Pacific closed on a deal to purchase the 11-acre site of the 330,000-square-foot building. Terms of the purchase from Xerox Corp. were not disclosed.
Barker Pacific acquired the building in 2005, said Michael Barker, managing director of Los Angeles-based Barker Pacific, a commercial real estate firm.
“It is a building that has the potential for being a Class A building; it has great bones,” Barker said. “The services are excellent. Cosmetically it needs a total overhaul because it is tired.”
Richard Keating of Keating Khang Architecture has been hired to upgrade the building. Xerox is still a tenant at the building and will continue to occupy a portion of it but will slowly move out of its offices, Barker said. About 100,000 square feet are vacant.
The renovations of the 35-year-old building will take about a year. Improvements will include upgrades to the lobby, lighting and elevators systems, among other enhancements.
Staff reporter Daniel Miller can be reached at
[email protected]
or (323) 549-5225, ext. 263.
