CBRE’s capital markets group has arranged $150 million in financing on behalf of CBRE Global Investors for the acquisition of 400 South Hope Street in downtown Los Angeles.
Two weeks ago CBRE Global Investors announced that it had purchased the 26-floor, trophy-quality office building on behalf of the CBRE Strategic Partners U.S. fund series. Val Achtemeier of CBRE debt & equityarranged the interest-only loan through MetLife. The loan term is for five years with a one-year option to extend.
CBRE Global Investors acquired the property from Tishman Speyer Properties, which had purchased the asset in 2005 for its Tishman Speyer Real Estate Venture VI fund.
The 701,535-sq.-ft. building on the corner of 4th and Hope streets is 81 percent leased to high-quality tenants on primarily long-term leases. The building features a recently renovated lobby with high-end finishes, subterranean parking, a unique top-of-building vacancy as well as significant building signage opportunities.
The building was constructed in 1982. CBRE Strategic Partners said at the time of the purchase that it would work to increase the value of the tower through an aggressive marketing/branding program. Additionally there are plans for a ground floor restaurant and LEED certification among other upgrades.
“Downtown Los Angeles is a market that is experiencing rapid transformation,” Vance Maddocks, president of CBRE Strategic Partners U.S. said in a statement. “It is becoming a live/work/play environment comparable to other west coast CBDs with over $17 billion in entertainment and infrastructure improvements over the past decade. Since 2008, the area has seen an influx of new business activity in keeping with the growing demands of employees and residents. We believe our strength of ownership and aggressive repositioning program, coupled with the dynamics of the market, will make 400 S. Hope attractive to prospective tenants.”
Kevin Shannon, CBRE western division institutional group vice chairman and managing director, represented the seller in the transaction. Also representing the seller were CBRE’s Todd Doney,office properties vice chairman; John Zanetos, brokerage office properties vice president; and Todd Tydlaska, investment properties director.