Owners of One and Two California Plaza seek bids that total $1B: sources

After securing ground leases, Beacon and CIM list trophy towers

Jan.January 25, 2017 08:44 PM
CIM co-founder Shaul Kuba and the California Plaza towers

After purchasing the land beneath the trophy towers in November 2016, the owners of One and Two California Plaza in Downtown Los Angeles have put them on the market, seeking bids that total up to $1 billion, sources told The Real Deal.

Beacon Capital Partners listed One California Plaza — a 1 million-square-foot, 42-story building at 300 South Grand Avenue — with brokerage Eastdil Secured. Sources familiar with the listing said it could sell for as much as $450 million.

CIM Group simultaneously began shopping Two California Plaza, the 52-story, 1.37 million-square-foot building where it recently locked down a massive lease with City National Bank. CBRE has the listing for the rebranded “[email protected]” at 350 South Grand, which sources said could draw in bids near $550 million.

If a buyer wants to purchase both towers, one source said, DTLA could see a $1 billion deal.

One Cal Plaza

Beacon purchased One Cal for $144.6 million in 2013, CoStar shows. It listed it in the past, when CRA/LA owned the ground lease, without luck. When Beacon purchased the land beneath the building from the defunct city agency for $33.4 million in November, it instantly became more sellable, sources said.

The property is 91 percent leased, CoStar shows. Law firm Skadden Arps Slate Meagher & Flom, takes 144,000 square feet. Other large tenants include Bank of the West; Morgan Lewis & Blocklus; and Willis Towers Watson.

Two Cal Plaza

CIM Group bought Two California Plaza for $297.7 million as part of a portfolio sale in 2014, CoStar show. It was 63 percent leased at the time. Two years later, CIM whipped the property into shape, purchasing the land it sits on for $70 million from CRA/LA and nabbing City National Bank as a 300,000-square-foot tenant in the second biggest lease of the year.

The building is now 81 percent leased, CoStar shows. Law firm Munger Tolles & Olson and finance firm Merrill Lynch also take space in the tower.

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