LOS ANGELES—National City Tower LLC has decided to sell the 118,162-square-foot National City Tower building in Downtown Los Angeles. The owner has asked Charles Dunn to list the property on their behalf for $45 million with a 4.7% cap rate. The sale includes three new restaurant leases.
Charles Dunn brokers Janet Neman and Bryan Glenn will market the building. “National City Tower is a rare opportunity to own a landmark building in the heart of Downtown Los Angeles, an area that is experiencing a huge amount of growth and capital infusion,” Neman tells GlobeSt.com. “As the demand for stabilized product like this increases, this asset is poised to gain in value over the near and long-term.”
Originally built in 1924, the property was formerly a National City Bank branch. In 2008, the owners used the adaptive reuse program to convert the 12-story historic building into a 93-unit loft building with ground-floor retail space, which is fully leased. The building’s tenants include Italian eatery Terroni, which occupies 6,000-square-feet, and eateries Peking Tavern and Crane’s Downtown Bar, which collectively occupies 4,200 square feet.
“With pent up demand and capital seeking trophy assets in core markets, we have already been garnering a significant amount of interest from a wide range of potential buyers including those in 1031 Exchanges, foreign investors and institutions,” Glenn explains. “National City Tower also offers the opportunity to add value as the rents are currently below market rates.”
The property has a mix of studio, one- and two-bedroom units and two-bedroom penthouses, with open floor plans ranging in size from 617 square feet to 1,884 square-feet. The building offers a rooftop garden, barbeque area and fitness center. The building benefits from the Mills Act Historical Property Contract Program, which allows owners to receive a property tax reduction to maintain the living space.
The owner listed the building three years ago, also with Charles Dunn, asking $32.75 million. The owner did not ever sell the building, and is now looking in to potential prospects again at a better time in the market.