Very positive news. In addition downtown is improving note following: Posted - 11 Jul 2012 04:00 EST CBRE buys downtown LA office for $238m
The Los Angeles-based investment management firm’s investment in 400 South Hope Street is the latest acquisition on behalf of its $750 million CBRE Strategic Partners US Value VI fund.
CBRE Global Investors has acquired a trophy office building in downtown Los Angeles on behalf of its latest value-added US real estate fund. The Los Angeles-based property investment management giant purchased the 701,535-square-foot office building at 400 South Hope Street from a joint venture between the Tishman Speyer Office Fund and BlackRock Realty for $238.4 million, according to data provider Real Capital Analytics.
CBRE bought the 26-floor asset on behalf of its CBRE Strategic Partners US Value VI fund. As previously reported, the firm’s latest commingled vehicle is targeting $750 million in equity commitments. CBRE declined to comment on the fund.
A statement issued by the firm reveals that the building currently is 81 percent leased. The CBRE Strategic Partners US team plans to increase value for the asset via an aggressive marketing programme. Planned enhancements to the asset include adding a ground-floor restaurant and LEED-certification, among other cosmetic upgrades.
“Downtown Los Angeles is experiencing a rapid transformation,” said Vance Maddocks, president of CBRE Strategic Partners US, in a statement. “Since 2008, the area has seen an influx of new business activity.”
MPG Office Trust, Inc. (MPG), a Southern California-focused real estate investment trust, announced today the disposition of Stadium Gateway (a joint venture property with Beacon Capital Partners, LLC) located in Anaheim, California. The Company received net proceeds from the transaction of approximately $1 million, including reimbursement of loan reserves.
This is a great deal for MPG; it keeps them out of bankruptcy. But it doesn't change the fact that a common dividend is far, far in the future, at the earliest. Purchase of the preferred may now make sense because the dividend could resume in as few as three years.