Waterbridge Beats the ULA Clock in $104M Union Bank Plaza Acquisition

It’s been in the works for months, and the impending tax increase brought on by Measure ULA may have been the deciding factor in Waterbridge Capital’s purchase of the Union Bank Plaza in Downtown Los Angeles for $104 million. The selling price of the 40-story, 702,000-square-foot tower was significantly less than the $208 million investment firm KBS paid for it in 2010.

Colliers’ Sean Fulp, Mark Schuessler, Ryan Plummer and Jason Roth arranged a $75 million acquisition loan for the transaction through LA-based family office BH Properties. The Class A building sits on a 3.6-acre parcel that covers an entire city block at 445 S. Figueroa Street.

Over the last several months, office fundamentals in DTLA have softened, and the Measure ULA transfer tax which kicks in on April 1 has complicated sales efforts even more. “Union Bank Plaza is just the most recent example of private capital filling the void where institutions have pulled back. We are thrilled to have been able to bridge the gap and get this deal across the finish line,” commented Fulp.

“Union Bank Plaza was the final building in REIT II, a fund which we are in the process of liquidating,” said Giovanni Cordoves, Western regional president for KBS, the seller in the transaction. “The property represents an opportunity for the buyer to be part of an eventual post-pandemic recovery in downtown Los Angeles. Given our recent renovations at Union Bank Plaza, the building is well positioned to attract new tenants with its indoor/outdoor workspaces and other amenities today’s office users increasingly desire.”

Colliers’ Sean Fulp will be a panelist at Connect Los Angeles! May 3rd at Hotel Indigo DTLA, join commercial real estate professionals and industry leaders for market insights, informative panels and networking opportunities. More details and registration info HERE.