X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-An affiliate of Beacon Capital Partners has acquired the Six Hundred Wilshire complex in Downtown L.A. from Legacy Partners. Terms of the deal were not disclosed, but sources familiar with the Downtown office market tell GlobeSt.com that Beacon is believed to have paid in the neighborhood of $67 million for the property.

The Six Hundred Wilshire property is composed of three buildings: a 16-story office tower at 600 Wilshire Blvd., an attached two-story retail annex at 601-609 W. 7th St. and an adjacent three-story building at 611 W. 7th St. The deal was executed through the West Los Angeles office of Boston-based Beacon and the Long Beach office of Foster City-based Legacy Partners, with Beacon representing itself and Legacy represented by the Jones Lang LaSalle team of David Doupé, Lawrence Krasner and Cheri Pierce.

Doupé tells GlobeSt.com that the deal worked out to the benefit of both buyer and seller in that Legacy had added value to the property by increasing occupancy by approximately 20%, but the current occupancy level of 78% leaves ample room for Beacon to add to that value. Jones Lang LaSalle was the leasing agent for Legacy and has retained the listing under the new ownership, with John McAniff and Tim Miller as the leasing agents.

Legacy repositioned the property as “a prime CBD Financial District office building for mid-size users,” notes Doupé. He says the new owners hope to boost occupancy beyond 90% within a year.

Legacy, which bought the 600 Wilshire property for $43.6 million in 2004, was motivated to sell now because capital values have risen significantly Downtown amid growing demand for investments there, Doupé explains. The property, at the intersection of Wilshire Boulevard and Grand Avenue, is in the Downtown Los Angeles financial district and close to much of the Downtown residential redevelopment as well as the Staples Center expansion, “LA Live.”

Built in 1980 and extensively renovated in 2002 and 2003, the 16-story tower was originally developed on a Security Pacific Bank branch site, now Bank of America. It has gone through several ownerships and repositionings, including one when the owners sought to convert the property to a telecommunications center to capitalize on the strong demand for telecom buildings at the time.

The ownership that sought to convert the property to telecom use was a partnership of Menlo Equities and AEW Capital Management, which designed the three-story building at 611 W. 7th St. to supply the 16-story office building with extra electrical power and other requirements for telecom users. The owners had executed only one telecom lease when the demand for telecom facilities fell off precipitously and left the building about half empty.

AEW later took control of the building with the objective of returning it to office use, eventually selling it to Legacy after filling a significant portion of the space. In addition to Bank of America, tenants at the 16-story office tower include Whitmont Development, Looking Glass Networks, the Environmental Protection Agency and Fireman’s Fund Insurance.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

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
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.