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Shorenstein to make $270m buy in LA

The San Francisco-based real estate investment firm has entered into a contract with Beacon Capital Partners to purchase the 1.1 million-square-foot Aon Center office building.

Shorenstein Properties has entered into an agreement with Beacon Capital Partners to purchase a 1.1 million-square-foot office building in downtown Los Angeles for approximately $270 million. The San Francisco-based real estate investment firm declined to comment because the deal has not yet closed.

Beacon originally purchased the 62-story building in 2007 on behalf of its Beacon Capital Strategic Partners V fund, which closed on $4.04 billion in equity. The fund purchased the property for $327 million and completed $15 million in capital improvements, according to data from Real Capital Analytics (RCA).

The property, known as Aon Center, currently is 54 percent occupied by tenants such as Wells Fargo, Aon Insurance Services, Morrison & Foerster and the State Bank of India, according to RCA. In May, Beacon hired Eastdil Secured to market the tower, which stands as the second tallest building in Los Angeles.

The sale marks another recent exit for Beacon’s Fund V. In December, the firm sold One Financial Center, a Boston office building with a gross asset value of $700 million, to a joint venture between MetLife Real Estate Investors and Norges Bank Investment Management (NBIM). In the transaction, NBIM bought a 47.5 stake in the property from Beacon for $238 million. MetLife, which already held a 50 percent stake in the building, acquired an additional 2.5 percent stake from Beacon to give the venture full ownership of the property.

Meanwhile, Shorenstein just closed on another one million-square-foot acquisition with the purchase of the Washington Square office complex in Minneapolis for $103 million. The seller in the transaction was Los Angeles-based real estate firm Commonwealth Partners, which was operating on behalf of the California Public Employees Retirement System.