LOS ANGELES—Cornerstone Real Estate Advisershas purchased 801 Tower, a 446,534-square-footoffice building in Downtown Los Angeles, from theMani Brothers Real Estate Group. The purchaseprice was undisclosed, however, industry sources unrelated to thetransaction tell GlobeSt.com that Cornerstone paid approximately$190 million for the property.

“The acquisition of 801 Tower checked all the boxes forCornerstone. It is a great real estate asset that we were able toacquire at a substantial discount to replacement cost and which hassignificant upside potential,” Chris Black, SVP ofacquisitions for Cornerstone Real Estate Advisers, tellsGlobeSt.com. “We also really like buildings within gatewaycities that demonstrate favorable supply and demand fundamentals.The revitalization of Downtown Los Angeles and its transition to a24-hour city presents strong prospects for future rent growth.”

Located at 801 S. Figueroa St. in downtown's South Parkdistrict, the 25-story office tower, which has 12,036 square feetof ground floor retail space, is positioned tobenefit from the resurging downtown market, which is attractingoffice users from the Century City and West Los Angeles marketwhere prices are skyrocketing. “Numerous development projects suchas Metropolis and the new WilshireGrand are currently under construction and will onlyimprove an already exceptional location,” Black explains.“Additionally, the property's convenient access to freeways and the7th Street/Metro Center Station is viewed as beneficial byprospective tenants.”