Union Bank Plaza returns to market after buyer backs down

It was reported that Pacific Reach Properties nabbed the DTLA tower

October 06, 2017 01:00 PM
Union Bank Plaza building (Credit: Loopnet)

Rewind the tape — one of Downtown L.A.’s trophy towers is still on the market, despite reports that it sold.

Last month, the Los Angeles Business Journal reported that RC Acquisitions, an affiliate of Pacific Reach Properties, had struck a deal to purchase the 40-story Union Bank Plaza building in the Financial District from KBS Real Estate for $280 million. But as of about a week ago, Pacific Reach officially backed away and the property remains for sale, sources with knowledge of the talks told The Real Deal. The company had trouble securing financing, the sources said.

Pacific Reach and KBS did not respond to requests for comment.

Cushman & Wakefield has the listing for the more than 600,000-square-foot office building, but could not immediately be reached.

The asset is part of a REIT vehicle KBS created that is now being dissolved, sources said.

In addition to the office tower, the listing for the property includes a roughly 20,000-square-foot retail building and a 1.8-acre developable parcel, according to REAlert. The parcel is reportedly being pitched as a potential site for a hotel or apartment building. The tower, smack in DTLA’s center, is 82 percent occupied. Union Bank is the anchor tenant with 375,000 square feet, according to Real Capital Analytics. Its lease is up for renewal in 2021, sources said. The property is also home to a host of law and financial services firms.

KBS’ REIT II fund previously purchased the site from Hines for $208 million, property records show.

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