New York firms purchases 49 percent stake in California One
City News Service | 10/2/2013, 12:03 p.m.
A New York City-based private equity real estate firm announced today that it has bought a 49 percent stake in the 42-story California One tower in downtown Los Angeles for $295 million.
An affiliate of Boston-based Beacon Capital Partners, formerly the full owner, holds the majority interest and will continue to manage the property.
“We have acquired a substantial interest in a top-tier asset with prominent tenants located in a premier West Coast office market. We are very pleased to be in partnership with Beacon on this trophy property,” said Ronald M. Dickerman, president of Madison International Realty.
“There have been no new office towers constructed in downtown Los Angeles in 20 years. The building is situated in an area with world-class amenities, what is today a vibrant live-work-play central business district,” he said.
The 577-foot skyscraper on Bunker Hill at 300 South Grand Avenue, completed in 1985, is half of the California Plaza project; the other half is Two California Plaza, home to the Museum of Contemporary Art, the Omni Hotel and a water court.
With more than 1 million square feet of office space, the building’s tenants include Bank of the West and the international law firms Skadden, Arps, Slate, Meagher & Flom LLP and Morgan, Lewis & Bockius.
Madison International, with $2 billion in commitments, provides capital to real estate investors worldwide.