“I believe in the future of Downtown Los Angeles”: Silverstein closes US Bank Tower buy

WTC developer plans “comprehensive capital improvement program” for first LA property

Los Angeles /
Sep.September 16, 2020 12:55 PM
OUE Limited executive chairman and CEO Stephen Riady and Silverstein Properties’ Larry Silverstein, with US Bank Tower at 633 West Fifth Street (Credit: Spencer Platt/Getty Images, and Wikipedia)

OUE Limited executive chairman and CEO Stephen Riady and Silverstein Properties’ Larry Silverstein, with US Bank Tower at 633 West Fifth Street (Credit: Spencer Platt/Getty Images, and Wikipedia)

Silverstein Properties closed on its $430 million deal to buy US Bank Tower, an iconic Downtown Los Angeles property whose purchase price was far below initial expectations.

New York-based Silverstein made the announcement on Wednesday. The company was first confirmed to be the buyer of the 73-story trophy office tower in July.

In a statement, chairman Larry Silverstein said: “I believe in the future of Downtown Los Angeles.”

He added that over the last few years, DTLA “has started to transform into a 24/7 community, with new residential buildings, restaurants, and bars — much like Lower Manhattan in the years after 9/11.”

The seller was Singapore-based investment management firm OUE Limited, which had put the 1.4 million-square-foot property on the market in early 2019.

OUE had acquired the property for $367.5 million in 2013, and valued it at about $633 million in its latest annual report. The sales price reflects the impact of the coronavirus pandemic, the seller noted in July.

Silverstein is planning comprehensive capital improvements to the property “to provide building tenants with a creative office campus in a vertical urban environment.” The company is also launching “INSPIRE, its hospitality-focused tenant experience program and mobile app designed to help tenants get the most out of their workday.”

According to previous disclosures to the Tel Aviv Stock Exchange, Silverstein plans to finance about 55 percent of its US Bank Tower acquisition and capital improvement costs with a three-year loan at an interest rate of Libor plus 3.4 percent, with two one-year extension options. No specific lender was named.





    Related Articles

    arrow_forward_ios
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    1301 Metropolitan Avenue and 151 East 90th Street (Google Maps)
    Industrial, multifamily, retail sales punctuated midsize deals last week
    Industrial, multifamily, retail sales punctuated midsize deals last week
    Clockwise from top left: 3-15 26th Avenue in Astoria, 1571 McDonald Avenue in Borough Park and 1160 Flushing Avenue in Bushwick (Google Maps)
    These projects missed the rezoning deadline
    These projects missed the rezoning deadline
    From top to bottom: 101 Cooper Street in Inwood, 781 Washington Avenue in Crown Heights and 70-35 113th Street in Forest Hills (Google Maps)
    Pent-up demand? Midsize i-sales total $125M after week of zero
    Pent-up demand? Midsize i-sales total $125M after week of zero
    Mack-Cali Realty CEO Mahbod Nia and River Centre in Red Bank (Mack-Cali)
    Mack-Cali offloads Red Bank office complex for $84M
    Mack-Cali offloads Red Bank office complex for $84M
    Hamed bin Zayed Al Nahyan (Getty)
    Pandemic squeeze forces Abu Dhabi fund to reassess real estate exposure
    Pandemic squeeze forces Abu Dhabi fund to reassess real estate exposure
    1111 Fannin Street, Houston (Google Maps, iStock)
    Harris County set to buy downtown Houston office building for close to $29M
    Harris County set to buy downtown Houston office building for close to $29M
    546 Broadway and Isaac Chetrit (Google Maps)
    Uniqlo finalizes $160M buy of its flagship at 546 Broadway
    Uniqlo finalizes $160M buy of its flagship at 546 Broadway
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...