Los Angeles, California-based MPG Office Trust, Inc. (MPG), a real estate investment trust (:REIT), recently inked a ten-year lease renewal deal with Wells Fargo Bank for total office space of approximately 291,000 square feet at Wells Fargo Tower.
MPG Office Trust has been active on portfolio restructuring and high class tenant retention as it recovers from the commercial real estate downturn during the recession. The company had previously disposed its various non-core properties located in Orange County, Glendale and other parts of Los Angeles to focus on the acquisition and management of strategic core market properties in California.
Wells Fargo Tower, the 54-storey renowned office building, spans a total space of 1,391,000 square feet. The tower is located on the top of Bunker Hill in downtown Los Angeles and is among the key market properties of MPG Office Trust. The tower is in close proximity to well known properties like The Marriott, Millennium Biltmore, the Hilton Checkers and The Standard hotels. Some of the recognizable tenants of the tower, besides Wells Fargo Bank, are – Oaktree Capital Group, LLC (OAK), Gibson, Dunn & Crutcher, and Dewey & LeBoeuf LLP.
Wells Fargo Bank, the unit of San Francisco-based Wells Fargo & Co. (WFC), is the fourth largest bank in the U.S. The bank, which has been a tenant at the Wells Fargo Tower since its inception in 1982, has total space comprising of office, retail and a museum. As per the deal, the bank has the option to contract the office space by 89,000 square feet, over the next three years. Moreover, the financial firm also has the option to expand the space at the property by 25,000 square feet, exercisable over the next two years.
MPG Office Trust is the largest owner and operator of Class A office properties in the Los Angeles Central Business District. The company owns, manages, acquires and develops high class office and real estate properties primarily in the Southern California market.
We presently have a long-term Neutral recommendation on the stock. It also carries a Zacks #3 Rank (a short-term Hold rating).
More From Zacks.com