LOS ANGELES--(BUSINESS WIRE)--
Rising Realty Partners (RRP) and Lionstone Investments (Lionstone) announced today a recapitalization of the historic PacMutual Campus (PacMutual), in Downtown Los Angeles. Lionstone replaces previous equity partner, Mount Kellett Capital Management. RRP will continue to act as operating and managing partner for PacMutual.
“I have great respect for Lionstone’s management team and their well earned sterling reputation. This is the second transaction we have done with Lionstone and we are pleased to bring them in as an investor on PacMutual. This partnership brings institutional, long-term ownership and enhanced capital to support the continuing improvement of PacMutual,” said Nelson Rising, RRP Chairman & CEO. Rising has previously served as CEO of two large, publicly traded real estate companies. Rising has also served as Chairman of the Federal Reserve Bank of San Francisco, the Real Estate Roundtable, and the Grand Avenue Committee.
Industry Partners’ Jim Jacobsen and Scott Rigsby served as advisors to Lionstone in the off-market transaction. The company will continue to lead PacMutual’s successful leasing efforts.
“Rising Realty Partners has turned PacMutual into a world-class location and one of the most in-demand properties in all of Los Angeles,” said Glenn Lowenstein, Lionstone’s Chief Investment Officer. “There is nothing like it in the downtown core. It fits perfectly into our strategy of investing in assets that are in demand by both traditional and creative office users looking for an authentic work environment.”
PacMutual is a campus of three interconnected buildings: Sentry Building (1921), Clock Building (1908), and Carriage House (1926) encompassing half of a large city block in the heart of Downtown Los Angeles. PacMutual is a recognized local landmark and was designated as a City of Los Angeles Historic-Cultural Monument No. 398 in 1982.
RRP purchased the PacMutual campus in April of 2012, and immediately began a $25 million restoration to reposition the property into lifestyle commercial office space. RRP’s interior renovations included recapturing corridors, removing plaster from exterior walls, and increasing the size of open floor plates. RRP also constructed a new outdoor dining courtyard, which attracted the now open Le Pain Quotidien and Tender Greens, which will open this summer.
In addition to the physical renovations, RRP enhanced technological amenities by installing a campus-wide fiber optic backbone and one of Los Angeles’ fastest free public Wi-Fi networks. Environmentally friendly improvements led to PacMutual being named the oldest LEED Platinum certified building in Southern California and the first historic building in the City of Los Angeles to garner that distinction.
“We invested in the necessary structural and technological improvements to make PacMutual a desirable option for new tenants,” said Christopher Rising, RRP President & COO. “Our ability to attract new tenants was significantly enhanced by the impressive marketing efforts of Industry Partners. Their success in securing leases at PacMutual is unprecedented. We are also glad to now have them as a partner.”
After engaging Industry Partners’ Downtown Los Angeles team, led by Carle Pierose, to manage PacMutual’s leasing and marketing efforts, 56 new leases were signed increasing occupancy from approximately 50 percent to what is currently more than 90 percent. Among the new leases include the global headquarters of online retailer Nasty Gal, Gifts.com, the Odd Gentlemen, and Oscar Award winning visual solutions firm Magnopus, one of the first true entertainment firms to relocate to downtown from the Westside.
“With one of the largest portfolios of creative office space in Greater Los Angeles, Lionstone is the perfect equity partner to build upon the success of PacMutual and carry out RRP’s vision to take it to the next level,” added Industry Partners’ Jacobsen.
Rising Realty Partners (RRP) is a full-service real estate platform specializing in creating world-class commercial and industrial properties. Core competencies include land and property acquisition, development and entitlement, repositioning, leasing, property management, asset management, and construction management. RRP executives have been creating value for investors in California commercial real estate markets for over four decades by striking the perfect balance between dynamic vision and trusted best practices. RRP is both opportunistic and prudent in its investment and asset acquisitions, utilizing proven wealth creation strategies and successful asset value enhancements for its investments. RRP owns and manages 12 properties with 2.3 million sf of space. For more information visit www.risingrp.com.
About Lionstone Investments:
Lionstone Investments is a privately owned real estate investment firm that specializes in conceptualizing, researching and executing national investment strategies on behalf of institutional investors and high net worth individuals. Lionstone bases its investment strategies on proprietary data and ideas centered around the ownership of real estate that serves the most productive segments of the US economy. Our current investment programs span the risk spectrum, from Core to Opportunistic, and are often customized with consideration given to market opportunities and the structure that our Investors desire. For more information visit www.lionstoneinvestments.com.
About Industry Partners:
Industry Partners is an entrepreneurial real estate services firm specializing in the representation of landlords, tenants, and developers, with a particular focus on creative work environments and adaptive reuse projects in Los Angeles. With offices in Santa Monica, Downtown Los Angeles and Universal City, the firm offers real estate brokerage, investment advisory, development and construction management services. For more information visit: http://www.industrypartners.com.
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