Law Firms Lease 73,000 SF on Bunker Hill

The deal at Two California Plaza was especially challenging because the building underwent multiple changes in ownership during the lease negotiations, according to Clay Hammerstein of CBRE. Hammerstein teamed with CBRE's Steve Bay and Kevin Bender to represent both of the law firms in their deal with Maguire Properties, which owns both of the California Plaza buildings.

Hammerstein points out that Maguire recently bought Two California Plaza from Blackstone Properties, which had acquired the building in its purchase of Equity Office Properties Trust last year. That made for a total of three owners in less than a year.

Although a change of ownership during lease negotiations is not unique, a multiple change like the Two California Plaza situation is less common, Hammerstein points out. He says that building ownership changes during lease negotiations are occurring more and more as the office investment market continues to be extremely active in Los Angeles.

Maguire Properties, which acquired One California Plaza from MetLife approximately three years ago, now owns six of the nine buildings on Bunker Hill. One California Plaza is located at 300 S. Grand Ave., and Two California Plaza is at 350 S. Grand Ave.

Both of the law firms signed renewals with Maguire to stay in the buildings for another 10 years. Terms of the leases were not disclosed, but Maguire's website lists asking rates for the One California Plaza space at $22 to $24 per sf per year, triple net.