Union bank

KBS contracted to sell Union Bank Plaza to DTLA for $165 million

Charles J. Schreiber Jr., CEO of KBS Real Estate (KBS)

KBS Real Estate is under contract to sell Union Bank Plaza in downtown Los Angeles for $165 million, The Real Deal has learned. If the deal goes through, it would be one of the largest office deals in the city this year.

The company signed a purchase and sale agreement for the 40-story tower on May 18, according to documents filed with the Securities and Exchange Commission. The buyer is an entity called Harbor Associates, LLC. KBS expects the deal to close on July 11, according to the filing.

The property, located at 445 South Figueroa Street on Bunker Hill, went on the market in August with an asking price of $250 million. The office tower is currently undergoing a $20 million renovation. Planned upgrades to the property include a two-story retail level and an outdoor seating area with fire pits, according to a previous press release.

MUFG Union Bank is one of the building’s major tenants. The company, which occupies approximately 30% of the property, recently signed a 15-year lease extension.

This is not the first time that KBS has found a buyer for the asset. In 2017, RC Acquisitions agreed to buy the 701,888 square foot tower for $280 million, but later backed out of the deal. If the acquisition does not close, Harbor Associates could have to pay $4 million in penalties.

The transaction is one of the few office deals to cross the $100 million mark this month in the Los Angeles market, most recently with Harrison Street’s acquisition of two Westside medical office buildings for $156 million. of dollars. In the first quarter, no sales reached the threshold of 100 million dollars. The largest transaction of this period was the Georgetown Company’s $93 million acquisition of 1350 North Western Avenue, according to the latest report from Avison Young’s Los Angeles office.