Making its first acquisition as a U.S. office REIT, New York-based Trizec Properties Inc. has acquired full ownership of Ernst & Young Plaza in Los Angeles in avalued at $149.8 million.
Since 1997, the 915,000 sq. ft. property has been owned by a joint venture between Whitehall Street Real Estate Limited Partnership VII, a private real estatefund managed by Goldman, Sachs & Co., and TrizecHahn Corp., Trizec’s predecessor company. Whitehall sold its 75% share to Trizec, which owned a 25% stake in the property.
According to Michael Escalante, senior vice president of capital allocations and business, the REIT’s strategy calls for continued investment in primary markets, while reducing ownership in secondary markets. "Los Angeles is one of our key markets and we are pleased to have added to our presence downtown," he says.
The 41-story office building — located in downtown Los Angeles at the corner of 7th and Figueroa streets — also includes 330,000 sq. ft. of retail space with tenants such as Morton’s of Chicago,Pizza Kitchen and Gold’s Gym.