The iconic Citigroup Center office building in downtown Los Angeles has been sold by Broadway Real Estate Partners LLC to a Houston real estate firm for about $285 million, a soft price reflecting the economy and long-term tenant leases.
The 48-story tower at 444 Flower St., known to television viewers as the “L.A. Law” building, was sold to Hines, which did not disclose terms of the deal. However, a real estate industry expert with knowledge of the transaction said it was about $320 per square foot, which amounts to $285 million for the 891,056-square-foot building.
The building, constructed in 1981, is about 93 percent leased and tenants include Wells Fargo & Co. and BP PLC.
The sale price is less than Broadway, a New York City real estate firm, had hoped to get. It’s also less than other downtown sales completed in recent years, which have been in the $400 per square foot range.
In December, the Business Journal reported that Kennedy Wilson Inc. of Beverly Hills had cancelled plans to pay New York City-based Broadway $315 million for the Class A tower. Broadway purchased the building in 2006 as part of a portfolio from Beacon Capital Partners LLC.’
Neither Broadway nor Hines could be reached for comment late Thursday afternoon.
