X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-Trizec Properties Inc. has agreed to acquire the 55-story, 1.4-million-sf Bank of America Plaza at 333 S. Hope St. in Bunker Hill from Beacon Capital Partners affiliate South Hope Street LLC for $440 million in one of the largest L.A. office deals in recent years. The transaction, expected to close in the third quarter, was brokered by Richard Plummer and David Hasbrouck of the Downtown Los Angeles office of Cushman & Wakefield on behalf of Beacon, with Trizec represented internally by Mike Escalante.”We think this is one of the best trophy buildings being sold on the West Coast this year, not only because of the product and the location, but also because of the quality of the rent roll,” Plummer tells GlobeSt.com, explaining that the building, which is 93% leased, is occupied by a high percentage of high credits tenants on long-term leases. Plummer notes that Beacon, which acquired the property two years ago, improved it significantly by signing Bank of America to a 190,000-sf lease, renewing the Capital Group for 12 years, renewing or expanding other existing tenants, and bringing in some new tenants. Besides Bank of America and the Capital Group, other tenants include BP (British Petroleum), CAP-MPT, Wells Fargo Bank and Sheppard, Mullin, Richter & Hampton. Beacon also added value to the property by building its own air conditioning plant, which is now under construction, meaning the property will no longer need to rely on the Bunker Hill Central plant.Plummer also points out that the building, completed in 1974 as the world headquarters for Security Pacific Bank, was extremely well-engineered and well-built, with above-standard amenities, which is a part of its appeal to Trizec. For example, the property includes a 2,200-space parking garage, which gives it a parking ratio of 1.6 spaces per 1,000 sf, or three times the parking ratio of most of the trophy buildings Downtown. The extra parking was a contributor to the $314 price per sf that the building commanded, Plummer says.The acquisition of the property is part of what Tim Callahan, Trizec’s president and CEO, describes as a repositioning of the REIT’s portfolio to further concentrate on its core markets such as Los Angeles. It adds to a Trizec Los Angeles portfolio that includes the 1.2-million-sf Ernst & Young Plaza at 725 S. Figueroa St., which was Trizec’s first acquisition after it launched in 2002 as a publicly traded US office REIT.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.