CBRE Global Investors has acquired a trophy office building in downtown Los Angeles on behalf of its latest value-added US real estate fund. The Los Angeles-based property investment management giant purchased the 701,535-square-foot office building at 400 South Hope Street from a joint venture between the Tishman Speyer Office Fund and BlackRock Realty for $238.4 million, according to data provider Real Capital Analytics.
CBRE bought the 26-floor asset on behalf of its CBRE Strategic Partners US Value VI fund. As previously reported, the firm’s latest commingled vehicle is targeting $750 million in equity commitments. CBRE declined to comment on the fund.
A statement issued by the firm reveals that the building currently is 81 percent leased. The CBRE Strategic Partners US team plans to increase value for the asset via an aggressive marketing programme. Planned enhancements to the asset include adding a ground-floor restaurant and LEED-certification, among other cosmetic upgrades.
“Downtown Los Angeles is experiencing a rapid transformation,” said Vance Maddocks, president of CBRE Strategic Partners US, in a statement. “Since 2008, the area has seen an influx of new business activity.”
According to a document published by the San Diego City Employees' Retirement System, which recently contributed $20 million to the vehicle, CBRE intends to “purchase, reposition and sell institutional-quality properties in select US markets” through Fund VI.
In addition to 400 South Hope Street, CBRE has invested in five other properties on behalf of the fund. These include an office property in Atlanta and two multifamily assets each in Denver and Baltimore. All told, the total value of these six properties is $536 million.