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Oscar de la Hoya Hops in the Downtown LA Ring with Office Buy
In a deal that closed on the first of October, Oscar de la Hoya’s Golden Boy Enterprises LLP has just acquired a majority interest in a 148.7k sf Class B office building at 626 Wilshire Blvd in downtown Los Angeles. De la Hoya purchased the stake from Barker Pacific Group (BPG) and together, along with Christopher Rising of Rising Real Estate Group, formed a new real estate partnership called Golden Boy Wilshire LLP. Rising also acquired a minority interest in the building, which was valued at $16 mil, or about $108/sf, in this deal.
BPG acquired the building from AEW for about $8.5 mil last October when it was less than 40 % leased, but since then they have been on a leasing tear, as Michael Barker, managing director of the Los Angeles-based development company said, “For the last twelve months we have been quickly leasing the available space in the building and we saw an opportunity to capitalize on the value our team created by increasing the tenancy to over 80 percent,”
The 12-story building is located on the corner of Hope St and Wilshire Blvd, about three blocks from the Harbor Freeway/Interstate 110 in the heart of the financial district of downtown Los Angeles.
Barker is retaining a reduced ownership position in the property, and will continue to manage it as well as retain its offices in the building. Handling the leasing will be Rising’s firm, called The Rising Real Estate Group. Adding to the ownership party at the building is the fact that the de la Hoya’s firm, Golden Boy Enterprises, will relocate to into 5.5k sf at the property next month from Library Tower, at 533 West 5th St. Other tenants in the building include Telehouse, Gianelli & Morris, Wescom Credit Union, Consensus Planning Group, and Nextel of California. The rest of the tenant roster includes a number of law firms and other professional service companies.
The building, originally designed by Langdon Wilson and built in 1967, was renovated in 2002 under the direction of architect Scott Johnson of Johnson Fain Partners. Johnson is renowned for his architectural design work at Fox Tower, 1999 Avenue of the Stars and MGM Tower in Los Angeles, and Rincon Plaza in San Francisco. The modern renovations included a sleek new main entrance and lobby with translucent glass walls, rich wood framed portals and redesigned security console with stainless steel and marble finishes.
Barker Pacific Group Inc is a 20-year-old firm that has completed or has under development or redevelopment in excess of $1 bil in commercial projects, including the award winning Hamilton Landing, a 550k sf Class-A office conversion project on Hamilton Air Force Base in Marin County. Several of Barker Pacific Group's other notable projects include: 100 First Plaza and 500 Sansome Street in San Francisco, The Fine Arts Building and 5055 Wilshire Boulevard in Los Angeles, the Xerox Centre in El Segundo, and The Miami Arena and Columbus Center in South Florida.
This deal could be an appetizer for a few larger courses to follow. As Andy Fixmer of the LABJ noted a few editions ago, several sizable properties are now on the market in downtown LA. Sumitimo Life Realty hired Cushman & Wakefield’s David Hasbrouck, Richard Plummer and Anthony Gatti to market 1000 Wilshire Blvd, the stylish 471k sf office building hovering over the 110 Fwy with the Wedbush Morgan sign at its peak. Sumitomo picked up this asset in 1999 for $73 mil and Fixmer suggests it might command as much as $100 mil, or $212/sf. Wedbush occupies 113k sf pursuant to a lease with seven years left. Another large tenant is the law firm of Buchalter Nemer Fields & Younger, which this year committed to 70k sf here for 10 years at an average effective rent of roughly $2.38/sf/mo FSG.
Other properties being shopped include: Figueroa Plaza, the asset the City of LA almost bought and then decided not too… again, which is owned by Northridge Capital who has it listed with Secured Capital; Transamerica Tower, the 32-story high-rise, which is owned by Canyon-Johnson Urban Fund LP and is being marketed by CB Richard Ellis; and the Hyatt hotel on Hope, which is being shopped by Cargill, who bought it as part of the mixed use complex at 7th and Flower that contains the hotel, the Macy’s Plaza mall and the 700 S. Flower St office building. Secured Capital and Kennedy-Wilson are both handling the hotel listing.
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