Rockpoint Group buying 5900 Wilshire for $310M: sources

The nearly 500K sf trophy property has been on the market since June

Sep.September 18, 2019 02:31 PM
Rockpoint Group co-founders Keith Gelb and Bill Walton with 5900 Wilshire Blvd
Rockpoint Group co-founders Keith Gelb and Bill Walton with 5900 Wilshire Blvd

Three months after it hit the market, 5900 Wilshire has a buyer.

Rockpoint Group is in escrow to buy the Miracle Mile office tower for $310 million, The Real Deal has confirmed.

The deal for the 493,000-square-foot office building pencils out to around $630 per square foot and would be Rockpoint’s second big purchase along that stretch stretch in less than two years.

An ownership group that includes PGIM Real Estate, Ratkovich Co. and AXA Capital put the building on the market for sale or recapitalization in June. At the time, sources told TRD that the owners were seeking around $300 million for the 30-story building.

Ratkovich declined to comment. Rockpoint could not be reached.

Located across the street from the Los Angeles County Museum of Art, the office tower is one of the largest and most recognizable properties in the area. It is about 93 percent leased, though anchor tenant SBE hospitality company will be exiting next month. Other tenants include public relations firm Edelman, talent agency Buchwald, marketing firm Phenomenon and staffing agency Creative Circle.

Real Estate Alert first reported the pending sale.

Ratkovich and PGIM acquired the building for about $102 million in 2005. In 2016, following a major renovation, AXA acquired a 49 percent stake from PGIM.

Boston-based Rockpoint also owns a 27-story office tower down the street, which it bought in 2017. The firm paid $215 million, or $483 per square foot, to acquire the building at 5670 Wilshire Boulevard from Blackstone Group.

The private equity fund also owns a 460-room Westin Hotel in Long Beach, plus several multifamily properties.

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