“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

TRD LOS ANGELES /
Sep.September 16, 2020 11:55 AM
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
10 E. Ontario Street tower, whose condo owners rejected a buyout bid by Strategic Properties of North America (Google Maps)

These River North condo owners couldn’t be deconverted

These River North condo owners couldn’t be deconverted
Thomas Cangiano, Head of School for GEMS World Academy in Chicago and 350 E. South Water St. in the East Loop (Building photo by Eric Allix Rogers via Open House Chicago)

Private school wants $150M for East Loop campus, has perfect tenant in mind

Private school wants $150M for East Loop campus, has perfect tenant in mind
Prologis’ Hamid Moghadam and an aerial of 3501 120th Ave in Kenosha, Wisconsin (Prologis; Google Maps)

Prologis sells Amazon fulfillment center in Kenosha for record price

Prologis sells Amazon fulfillment center in Kenosha for record price
Focus’ Tim Anderson and the Kelmscott Park apartments in downtown Lake Forest

Chicago developer Focus sells Lake Forest complex at record per-unit price

Chicago developer Focus sells Lake Forest complex at record per-unit price
601 S. Lasalle Street (Credit: Google Maps)

Help wanted: Developer needed to buy $25M property, build tower

Help wanted: Developer needed to buy $25M property, build tower
Hales Franciscan at E. 50th St. and S. Langley Avenue (Credit: Google Maps)

Catholic school might need divine intervention to sell Bronzeville campus at $44 psf

Catholic school might need divine intervention to sell Bronzeville campus at $44 psf
CMK Companies’ President and CEO Colin Kihnke and 1400 S. Wabash Avenue (Credit: Google Maps; CMK)

CMK scoops up South Loop dev site

CMK scoops up South Loop dev site
Scott Goldman and the former WMS Industries campus in Avondale

Baum Revision pays $26M for Avondale office complex

Baum Revision pays $26M for Avondale office complex
arrow_forward_ios

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

Loading...