"The property represents an opportunity for the buyer to be part of an eventual post-pandemic recovery in downtown Los Angeles. Given our recent renovations at Union Bank Plaza, the building is well positioned to attract new tenants with its indoor/outdoor workspaces and other amenities today's office users increasingly desire," he said.

A $75M acquisition loan was secured for the Union Bank Plaza purchase. A Colliers team including Vice Chair Sean Fulp, Executive Vice Presidents Mark Schuessler and Ryan Plummer, and Senior Vice President Jason Roth sourced the financing from Los Angeles-based family office, BH Properties.

Located at 445 S. Figueroa Street in DTLA, Union Bank Plaza consists of a 40-story, 702K SF Class A office tower that sits on a 3.6-acre parcel that covers an entire city block.

The sale price represents a steep drop from the when the building went on the market in 2021 with an asking price reportedly as high as $250M. Harbor Associates placed the deal under contract in May 2022 for $165M but dropped the deal a few months later.

Built in 1967, Union Bank Plaza comprises a 40-story office tower, a two-level retail center, a two-acre landscaped outdoor plaza and an ample four-level parking structure.

Shared amenities at the property include EV car-charging stations, and on-site bank, carwash/detailing, and storage. The building is named for anchor tenant Union Bank, which has occupied the tower since its construction.

The property recently underwent a $22 million renovation that includes a remodeled lobby with upgraded elevator cabs, and improvements to the outdoor plaza, including fire pits.

Measure ULA, the new property transfer tax on commercial and residential transactions over $5M in Los Angeles—an initiative that was approved by a lopsided 58% to 42% margin in a state referendum in November—is not delivering the kind of tax revenue, earmarked to support a new housing fund, proponents of the measure told voters to expect if they passed it.

A recent analysis from the City Administrative Office in Los Angeles now estimates that Measure ULA will generate up to $672M in the fiscal year that begins on July 1 and end on June 30 next year.

Supporters of Measure ULA told voters on the city's voter information pamphlet—the official ballot information provided to voters that explains what an initiative aims to accomplish—said the property transfer tax would generate $900M per year, based on real estate sales volume in the fiscal year that ended in June 30 2022.

This claim was amplified by a UCLA analysis published in September that estimated that the transfer tax would generate $923M. The new property transfer tax adds a 4% tax on all residential and commercial sales over $5M and a 5.5% tax on sales over 10%.

Neither of the earlier estimates included an important caveat: they assumed all the sales they based their estimates upon would actually close.