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Joint venture is selling landmark USC Tower in DTLA
The South Park Center is owned by LBA Realty and LaSalle Investment Management
UPDATED, July 19, 2:37 p.m.: A joint venture between LBA Realty and LaSalle Investment Management has put the landmark USC Tower on the market for sale, The Real Deal has learned.
The 32-story tower is part of the South Park Center, a two-building complex designed
by renowned architect William Pereira. The owners are shopping the entire 1 million-square-foot complex.
Sources said the property could fetch bids of $400 per square foot, or $400 million.
A spokesperson for LaSalle confirmed the USC Tower is on the market but declined to comment on specifics. A representative for LBA did not respond to requests for comment.
Eastdil Secured has the listing.
The trophy USC Tower at 1150 S. Olive Street spans 591,100 square feet. Formerly known as the AT&T Center, the Class A office building was renamed “USC Tower” three years ago when the university expanded its footprint at the complex. The institution now holds around 260,000 square feet in the building. Other tenants include WeWork, Transamerica and Steelcase, an office furniture manufacturer.
Also in the South Park Center is an 11-story tower, known as 1149 Olive, and two parking garages. Amenities at the campus include a 500-seat theater, several cafes, a gym and retail space.
LBA purchased the entire complex for $130 million in 2005. The Irvine-based firm then tapped Gensler to lead a $35 million renovation of the 1960s-built campus the following year.
LBA sold a stake in the property to LaSalle in 2012, property records show.
The offering presents a rare opportunity to purchase one of Downtown’s Class A skyscrapers. Over the past 12 months, office trades amounted to $5.8 billion in total sales volume, a year-over-year decline of nearly $3 billion, according to a second-quarter report from Marcus & Millichap. Much of the decrease in deal flow is due to fewer trophy properties hitting the market.
LBA has also been making a bigger push into the industrial space. In April, the firm paid $58 million to acquire an 11-acre industrial site in Vernon, the most expensive deal that month. Industrial properties make up around three quarters of its portfolio and make up around 56 percent of its value.