Family investment group buys Chase Plaza for $50M

PPSF of $540 sets record for DTLA: broker

Oct.October 03, 2016 08:30 AM

The 15-story Chase Plaza building in Bunker Hill changed hands Thursday for $50 million, or about $540 per square foot — the highest price per square foot paid for a Downtown office building in the last 10 years, according to the broker on the deal.

The buyer was an Los Angeles family investment group headed by Macy Lai, the L.A. Times reported. The seller was a partnership led by the New York City-based Somerset Group.

The property, at 888 West 6th Street, spans just 105,000 square feet, making it significantly smaller than the neighboring 50- and 60-story structures. But it was its smaller size that attracted bidders, CBRE broker Phillip Sample told the Times.

Sample represented both the seller and the buyer. Lai said the family plans to hold on to the property as a long-term investment.

The deal serves as further evidence that DTLA’s commercial market is seeing a resurgence, Sample said. The submarket had a vacancy rate of 16.9 percent and average rent of $3.27 per square foot in the second quarter of 2016 — a slow but steady improvement over the same period last year, according to a CBRE report. [LAT]Cathaleen Chen

Related Articles

LA promo

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams

Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project

510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando