Silverstein will pour $60M into US Bank Tower overhaul

Firm looks to give supertall creative office feel; observation deck, Skyslide getting axed

Los Angeles /
May.May 21, 2021 08:51 AM
Larry A. Silverstein with LA's US Bank Tower. (Getty, Silverstein)
Silverstein Properties’ Larry Silverstein with U.S. Bank Tower in Downtown L.A. (Getty, Silverstein)

Silverstein Properties’ planned $60 million overhaul of U.S. Bank Tower will look to add a creative office feel to the 31-year-old supertall.

The firm aims to make the 1.4 million-square-foot Downtown building more appealing to companies that have traditionally eschewed vertical offices for campus-like settings, according to the Los Angeles Times.

Silverstein said it would undertake a “comprehensive capital improvement plan” at the 73-story skyscraper when it closed its $430 million purchase of the property in September.

Silverstein received a significant discount — the firm paid 34 percent less than the tower’s most recent valuation by seller OUE Limited. The property is currently 73 percent leased.

The company’s long-term investment comes as the L.A. office market continues to struggle. Leasing volume in the first quarter fell to 3.1 million square feet compared to 5 million square feet in the first quarter of 2020. Overall vacancy countywide was at 17.2 percent.

Silverstein’s tower overhaul will include cosmetic changes as well as the addition of a coffee lounge and bar in the lobby, and communal tables and patios on the ground floor.

The 54th floor, a junction point for the lower- and upper-floor elevators, will be renovated into a lounge with a fireplace, co-working stations, bar, cafe and full-service kitchen.

Silverstein is doing away with the 70th floor observation deck and Skyslide, which were the work of OUE Limited. Those floors will be turned into leasable office space.

Silverstein’s head of leasing, Jeremy Moss, said his company wants the property to feel like a boutique hotel or residential building rather than an office building.

U.S. Bank Tower is Silverstein’s first investment in L.A. The New York-based firm announced it would explore more investments in the area in the future.

[LAT] — Dennis Lynch 


Related Articles

arrow_forward_ios
VMware’s Raghu Raghuram and Broadcom’s Hock Tan with 3401 Hillside Drive and 250 Innovation Drive (VMware, Broadcom, Google Maps)
Broadcom’s offer for VMWare sets stage for office consolidation
Broadcom’s offer for VMWare sets stage for office consolidation
TCW's David Lippman with and the City National Plaza at 515 S. Flower Street (David Lippman, City National Plaza)
TCW inks largest pandemic-era office lease in DTLA
TCW inks largest pandemic-era office lease in DTLA
Joel Schreiber and 801 South Broadway (Google Maps)
WeWork’s first investor in grind on DTLA’s Broadway Trade Center
WeWork’s first investor in grind on DTLA’s Broadway Trade Center
 1933 South Broadway (Loopnet, iStock)
Ara Tavitian scores $150M refi on The Reef in DTLA
Ara Tavitian scores $150M refi on The Reef in DTLA
GI Partners' Rick Magnuson and One Wilshire (GI Partners, One Wilshire)
Here’s how much tenants are paying at One Wilshire in DTLA
Here’s how much tenants are paying at One Wilshire in DTLA
Coretrust Capital Partners' Thomas Ricci, Randall Scott and John Sischo; 444 S. Flower Street, Los Angeles (444 South Flower, iStock, Coretrust Capital Partners)
Coretrust leases 44K sf of offices to law firms in DTLA
Coretrust leases 44K sf of offices to law firms in DTLA
Kilroy Realty CEO John Kilroy (Getty, Kilroy Realty)
Kilroy Realty sees jump in profit despite dip in leases
Kilroy Realty sees jump in profit despite dip in leases
Hudson Pacific’s Chris Pearson and CBRE’s Lewis Horne (Hudson Pacific, CBRE, iStock)
Hudson Pacific, CBRE eye West Coast hubs with impact fund for women, ethnic minorities
Hudson Pacific, CBRE eye West Coast hubs with impact fund for women, ethnic minorities
arrow_forward_ios

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

Loading...