Rising Realty JV Buys Garland Center

The property is 733,000 square feet.

LOS ANGELES—A joint venture between H.I.G Realty Partners, Silverpeak Real Estate Partners and Rising Realty Partners has acquired the Garland Center in Downtown Los Angeles. The sales price of the property was not disclosed, however, industry sources unrelated to the deal tell GlobeSt.com that the joint venture paid $210 million for the property. The property is a 733,000-square-foot office building and data center, and the purchase includes a 1,600-space parking structure.

“The Garland Center is the perfect fit in the Rising portfolio for a couple of different reasons,” Chris Rising, president and COO of Rising Realty, tells GlobeSt.com. “For one, it’s a fully leased building with great credit tenants. Second, the building’s data center infrastructure, capabilities and potential is right in our wheelhouse given our telecom expertise with 5×5 Telecom. Lastly, it’s an underutilized asset in DTLA that was subject to a complex ground lease with three years remaining.  At closing, we were able to immediately collapse the ground lease and begin negotiations with the new and existing tenants to sign long term leases, unlocking immediate lease-up and exit value.”