“I believe in the future of Downtown Los Angeles”: Silverstein closes US Bank Tower buy

WTC developer plans “comprehensive capital improvement program” for first LA property

Los Angeles /
Sep.September 16, 2020 09:51 AM
OUE Limited executive chairman and CEO Stephen Riady and Silverstein Properties’ Larry Silverstein, with US Bank Tower at 633 West Fifth Street (Credit: Spencer Platt/Getty Images, and Wikipedia)
OUE Limited executive chairman and CEO Stephen Riady and Silverstein Properties’ Larry Silverstein, with US Bank Tower at 633 West Fifth Street (Credit: Spencer Platt/Getty Images, and Wikipedia)

Silverstein Properties closed on its $430 million deal to buy US Bank Tower, an iconic Downtown Los Angeles property whose purchase price was far below initial expectations.

New York-based Silverstein made the announcement on Wednesday. The company was first confirmed to be the buyer of the 73-story trophy office tower in July.

In a statement, chairman Larry Silverstein said: “I believe in the future of Downtown Los Angeles.”

He added that over the last few years, DTLA “has started to transform into a 24/7 community, with new residential buildings, restaurants, and bars — much like Lower Manhattan in the years after 9/11.”

The seller was Singapore-based investment management firm OUE Limited, which had put the 1.4 million-square-foot property on the market in early 2019.

OUE had acquired the property for $367.5 million in 2013, and valued it at about $633 million in its latest annual report. The sales price reflects the impact of the coronavirus pandemic, the seller noted in July.

Silverstein is planning comprehensive capital improvements to the property “to provide building tenants with a creative office campus in a vertical urban environment.” The company is also launching “INSPIRE, its hospitality-focused tenant experience program and mobile app designed to help tenants get the most out of their workday.”

According to previous disclosures to the Tel Aviv Stock Exchange, Silverstein plans to finance about 55 percent of its US Bank Tower acquisition and capital improvement costs with a three-year loan at an interest rate of Libor plus 3.4 percent, with two one-year extension options. No specific lender was named.






    Related Articles

    arrow_forward_ios
    (Proper Hotel, Google Maps)
    Downtown LA’s Proper Hotel to open in July after years of delays
    Downtown LA’s Proper Hotel to open in July after years of delays
    Larry A. Silverstein with LA's US Bank Tower. (Getty, Silverstein)
    Silverstein will pour $60M into US Bank Tower overhaul
    Silverstein will pour $60M into US Bank Tower overhaul
    1333 S. Orange Grove Avenue (Google Maps)
    Canfield sells newly converted luxury rental complex
    Canfield sells newly converted luxury rental complex
    Photo illustration of Phillip Aarons and a rendering of the project (Patrick McMullan/Getty)
    Hollywood megaproject along active fault line faces another test
    Hollywood megaproject along active fault line faces another test
    Two buildings in the apartment portfolio (Google Maps, iStock)
    Westside apartment portfolio fetches $73M
    Westside apartment portfolio fetches $73M
    The Grand, Eighth & Figueroa, and 945 W. 8th (Related, Johnson Fain, L.A. Department of City Planning, Getty)
    DTLA vacancy rates rose across all property types in 2020
    DTLA vacancy rates rose across all property types in 2020
    Brookfield Property Partners CEO Brian Kingston and the Gas Company Tower at 555 West 5th Street (Brookfield)
    Brookfield lines up $465M refi for Gas Company Tower in DTLA
    Brookfield lines up $465M refi for Gas Company Tower in DTLA
    Experts warn that the pandemic will bring a surge in evictions and put more people at risk of becoming homeless. (LACC)
    LA mulls using Convention Center as temporary homeless shelter
    LA mulls using Convention Center as temporary homeless shelter
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...