PacMutual Building Replace Equity Partner

LOS ANGELES—Rising Realty Partners has recapitalized the historic PacMutual Building with Lionstone Investments as its new equity partner. Lionstone has replaced former equity partner Mount Kellett Capital Management for an undisclosed price. RRP will remain the operating and managing partner of the asset.

“I think from Mount Kellett’s perspective, it was time to take their chips off the table and move on. They had done what they wanted to do and gotten the return they wanted to get,” Christopher Rising, RRP president and COO, tells GlobeSt.com. RRP purchased the asset in 2012 with Mount Kellett when it was only 50% leased. Through a $25 million renovation project, they have brought the asset up to 90% occupancy and recently achieved LEED-Platinum certification, becoming the oldest building in Los Angeles to hold the esteemed green title. “When we bought the project, there wasn’t a whole lot of conservative capital that was interested in doing this deal,” Rising adds. “Realty equity is priced based on risk, and we found a wonderful partner in Mount Kellett. They believed in our vision and believed we could execute it.”