Waterbridge Capital Pays $104M for LA Office Tower

Union Bank Plaza. Image courtesy of KBS

Waterbridge Capital has paid $104 million for Union Bank Plaza, a 675,945-square-foot, Class A office building in downtown Los Angeles. The high-rise was the last asset in the portfolio of KBS Real Estate Investment Trust II, a fund which KBS is in the process of liquidating.

Waterbridge also assumed around $6 million worth of committed capital obligations to existing tenants. According to CommercialEdge, the buyer financed the purchase with a $75 million loan originated by BH Properties.

Newmark brokered the transaction on behalf of the seller, while Cushman & Wakefield represented the buyer. Greenberg Traurig acted as legal counsel for KBS.

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Union Bank Plaza. Image courtesy of KBS

Completed in 1967 and designed by architect A.C. Martin, Union Bank Plaza is a 40-story office tower featuring a two-level retail center and a 2-acre landscaped outdoor plaza, as well as a four-level parking structure. Property amenities include EV charging stations, on-site banking, carwash/detailing and storage.

Union Bank has been anchoring the tower since its opening. Chekian Law Office, T. T. Williams Jr. Investigations, Tung & Associates, Dakessian Law, U.S. Bank, Yoka & Smith and Hawkins Parnell & Young are also on the tenant roster, CommercialEdge data shows.

A fresh new look

Union Bank Plaza. Image courtesy of KBS

The office building has recently undergone a $22 million renovation process, featuring a revamped lobby with upgraded elevator cabs and improvements to the outdoor plaza, which included new fire pits and workspaces.

Located at 445 S. Figueroa St., Union Bank Plaza is just east of Interstate 110, close to various shopping, dining, lodging and entertainment destinations. The Los Angeles International Airport is some 17 miles from the property.

Newmark U.S. Capital Markets Co-Head Kevin Shannon, Senior Managing Director Laura Stumm, along with Executive Managing Directors Ken White and Rob Hannan, represented KBS. Cushman & Wakefield Vice Chairman Mike Condon acted on behalf of Waterbridge.

Greenberg Traurig Co-Chair of the West Coast Real Estate Practice & Co-Managing Shareholder of the Orange County Office Bruce Fischer offered legal representation for the seller.

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Tim Helgeson, senior vice president at KBS and asset manager for Union Bank Plaza, mentioned that the Los Angeles office market could see positive effects from an increasing sentiment among major corporations to return to in-person work, despite the uncertainty caused by the present sluggish economic conditions, as noted by Newmark.

Despite a slowdown in sales activity, investors are still drawn to the major western office markets. According to a recent CommercialEdge report, Los Angeles saw $154 million in closed deals as of February.