CBREGI Sells CBRE DTLA HQ for $330M

The property is located at 400 S. Hope Street in Downtown Los Angeles.

LOS ANGELES—CBRE Global Investors has sold 400 S. Hope Street in Downtown Los Angeles to a joint venture between PNC Financial Services and GLL RE Partners. The terms of the transaction were not disclosed, however, industry sources unrelated to the deal tell GlobeSt.com that the property traded hands for $330 million and that the investor purchased the property in 2012 for $235 million, creating nearly $100 million in value. The 700,000-square-foot office building houses CBRE’s global headquarters, where the firm debuted its workplace 360 office model.

“We were done with our business plan,” Phil Hench, a principal at CBRE Global Investors, tells GlobeSt.com about why they decided to dispose of the asset. “We are a value-oriented fund, so our MO is to create value through leasing and physical repositioning, and we typically try to achieve a business plan in fairly short order, less than five years. We had completed that as this building; we had bought the property at less than 80% occupancy and taken it to more than 90%, and we took it from a second-tier class-A property to a true Downtown class-A property that we bought with all of the various amenities that we brought in and the lease extensions.”