Transamerica Keeps 260,000 SF Downtown

LOS ANGELES-Long-time tenant Transamerica has signed a lease for 260,000 sf at the AT&T Center at 12th and Olive streets in Downtown Los Angeles, where the insurance giant has been since 1963. Transamerica’s renewal comes at the same time the building ownership has launched an extensive renovation program of the campus and has also signed the University of Southern California for a lease for 15,000 sf.

Transamerica’s lease is for 12 floors at the AT&T Center and the adjacent Hill Building. The insurance company has occupied space since the 32-story tower was completed in 1963, notes Ron Wagley, president and chairman of Transamerica Occidental Life Insurance Co.

Transamerica was represented by Peter Best, Lisa St. John and James Malone of Jones Lang LaSalle, with Todd Doney and Bruce Asper of CB Richard Ellis representing building owners LBA Realty. Phil Belling, Irvine-based LBA’s managing partner, says that retaining Transamerica as an anchor tenant at AT&T Center was a major goal for LBA.

With Transamerica and AT&T’s long-term commitments, occupancy at the site exceeds 90%. Terms of the new Transamerica and USC leases were not disclosed; recent market reports pegged average asking rates for Downtown Los Angeles office space at about $2.50 per sf.

The first phase of the renovation program at the AT&T Center, including upgrades to the lobby and exterior, is scheduled for completion early in 2007. The renovation program is being designed by Gensler architects and built by Howard S. Wright Construction.

USC’s lease at the AT&T Center is for a satellite campus and administrative offices within the center’s Hill building. The university will use the space to house administrative personnel and classrooms for its School of Education, School of Policy, Planning and Development and School of Social Work.

The university was represented by Howard Feuerstein of Travers/Oncor International, with Doney and Asper of CBRE representing LBA. AT&T Center is a three-building office campus. LBA Realty acquired the property’s landmark 32-story tower and one of the two adjoining buildings in April 2005.