The 702,000-square-foot building is expected to fetch roughly $250 million.
The skyscraper has 674,731 square feet of office space and 27,157 square feet of retail space. Retail makes up two stories of the building, and 40 stories are office space.
Newmark Group Inc.’s Kevin Shannon has the listing of the 3.6-acre property, which is 62% leased, according to the site’s marketing materials. The average weighted lease for those tenants is 7.7 years.
MUFG Union Bank has 14 years left on a 15-year lease renewal and is the tower’s largest tenant. The bank occupies roughly 30% of the building.
Union Bank Plaza was built in 1967, and it was the first downtown skyscraper to be designated a Historic-Cultural Monument, according to the Los Angeles Conservancy.
The property is undergoing a $64.8 million renovation, with $9.1 million allocated for the lobby and courtyard, $3.2 million for the conference center plaza, $10.2 million for retail, $2.6 million for boiler upgrades, $8.2 million for building improvements and $31.5 million for tenant improvements.
Work has not yet started on the boiler upgrades. A credit will be given to the buyer. For tenant improvement allowances, $21.4 million has been spent in the last five years, and $10.1 million will be given as a seller credit.
The property is owned by Newport Beach-based KBS Real Estate. In 2020, the company voted to liquidate its assets.
The property represents a rare acquisition opportunity, according to marketing materials indicating that 84% of Class A office buildings in downtown are owned by long-term holders. Only four other downtown properties can accommodate tenants looking for more than 100,000 square feet of contiguous space.
KBS purchased the property for $208 million in 2010.
A plan to sell Union Bank Plaza for $280 million in 2017 fell through when the purchaser executed its right to terminate the agreement, according to Securities and Exchange Commission filings.
It isn’t the only iconic downtown property to hit the market recently.
Last year New York-based Silverstein Properties purchased the U.S. Bank Tower for $430 million.
Silverstein Properties has since announced plans for a $60 million upgrade to the skyscraper, including a redesign of the lobby and main entrance.
Also last year, Rockwood Capital and LPC West, the West Coast arm of Lincoln Property Co., sold a 22-story high-rise at 915 Wilshire Blvd. to German real estate investment company Deka Immobilien for $196 million.
