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DTLA’s U.S. Bank Tower Goes to Mystery Buyer for $430M
Beringia Central LLC, an indirect wholly-owned subsidiary of OUE Limited, is selling U.S. Bank Tower in Downtown Los Angeles to USBT Property Owner LP for $430,000,000. The transaction is expected to close by September.
The 72-story Class A office property at 633 West 5th St. was completed in 1989. The property was acquired by Beringia Central in 2013 for roughly $367,500,000. The deal also includes Maguire Gardens and Westlawn Garage.
The property underwent a series of asset enhancements, including the launch of OUE Skyspace LA. OUE also intends to dispose of the leasehold interest in this open-air observation deck and indicated it is currently negotiating with several prospective buyers.
The company says this strategic sale of U.S. Bank Tower follows an evaluation of its assets and despite deal pricing coming in below valuation, it believes the disposition benefits the company and its shareholders.
The disposition enables OUE to streamline its asset ownership in a period when the longer term outlook of the U.S. property market may not be favorable due to COVID-19 impacts, and unlocks capital so it can be recycled into higher growth reinvestment opportunities. The sale allows OUE to substantially increase its cash reserves, improve its net gearing by paring down existing debts and remain nimble in the current uncertain global economic climate.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition
