Fresh off the sale of a $1.2 billion office portfolio, KBS Capital Market Groups has started the $20 million renovation of the Union Bank Plaza in Downtown Los Angeles.
The project includes renovating the two-story retail space, updating conference space and more, the Los Angeles Business Journal reported.
The 40-story tower covers a full block at 445 S. Figueroa Street, and it consists of 677,055 square feet of office space and a 24,833-square-foot retail plaza. The project was designed by HLW International, and Swinerton Builders Inc. is the contractor.
Two of the eight new spec tenant suites have been preleased, the Business Journal added. The changes are scheduled to be complete in early 2020.
KBS failed to sell the building after RC Acquisitions backed out of a $280 million deal in 2017. The firm then saw the appraised value of the property drop about $52 million. Union Bank also recently vacated about 136,000 square feet after occupying 344,000 square feet at the start of 2018.
Records show KBS purchased the building for $208 million in 2010. Cushman & Wakefield’s Justin Collins, Pete Collins and Kelli Snyder are the leasing agents.
In Downtown, the U.S. Bank Tower was listed for about $700 million early this year. And more tall projects are set to join the skyline. For example, Sun Cal is building a $2 billion “6AM” project that will include office space. Also, the Times Mirror Square tower calls for new office space. [LABJ] — Gregory Cornfield