Transamerica Tower about to change hands.SOUTH PARK - Transamerica Occidental Life Insurance Co. is finalizing a deal under which it will sell its landmark Transamerica Center office complex in the South Park district of downtown L.A. for $81 million and then lease back two-thirds of the complex for 17 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Business Journal has learned. "It's not a done deal. We are working on a deal, and the price of $81 million is right," confirmed Chuck Bruni, a vice president with LaSalle Partners who is representing Transamerica in the negotiations. "I expect to wrap up the deal by year-end, but I am making no predictions." Neither Bruni nor a Transamerica spokesman would disclose the expected buyer or other details about the pending transaction. "Nothing has been finalized. There is no sale to announce right now," said Charles Coleman For the American murderer, see . Charles Coleman (circa 1807, Pontefract–circa 1874, Rome) was an English painter. In 1835, Coleman went to Rome to study the paintings of Michelangelo and Raphael. , spokesman for Transamerica in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or . "We announced that the building was for sale last fall." However, a source close to the deal said the buyer is a new entity being financed by an affiliate of Tokyo-based giant Nomura Securities Co. Ltd., and that Transamerica will lease about 800,000 square feet from the new owners for 17 years. A Nomura spokesman in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of wouldn't confirm or deny the firm's involvement in such an acquisition. The Transamerica complex contains 1.2 million square feet of space in three buildings located several blocks south of the downtown L.A. highrise core. The sale-leaseback arrangement explains, in part, why the late-1960s-vintage Transamerica complex - a three-building, 1.2 million-square-foot project located in the less-than-prestigious South Park section of downtown - commands a sale price nearly on par with the 1.3-million-square-foot Two California Plaza The name California Plaza may refer to one of the following locations in Los Angeles:
“Don’t shoot until you see the whites of their eyes”; American Revolutionary battle (1775). [Am. Hist.: Worth, 22] See : Battle . The 4-year-old, 52-story Two Cal Plaza tower - which competes for tenants in the depressed downtown highrise market - was sold two weeks ago to a group led by Chicago investor Sam Zell Samuel "Sam" Zell (born September 1941) is a U.S.-born billionaire and real estate entrepreneur. He is co-founder and Chairman of Equity Group Investments, a private investment firm. for an estimated $90 million to $100 million. Two Cal Plaza is located on land leased from the city and will lose its biggest tenant in the near future - factors that diminish its value in the eyes of investors. Many major institutional investors are now seeking to buy income properties for the cash flow that such properties can generate, rather than for anticipated property-value appreciation. A sale-leaseback deal, which essentially guarantees steady, long-term rent payments to a buyer, falls into this mold. Tenants other than Transamerica occupy about one-third of the complex's office space. And it's considered no coincidence that the lease term of the second-biggest tenant - State Bar Association of California, which leases about 175,000 square feet - expires in 17 years. Other major tenants in the Transamerica Center include Maxicare Health Plans Inc. and MFS MFS Medicare fee schedule Intelenet Inc. Transamerica wouldn't comment on the strategy behind the pending sale - which comes as plans for a new sports arena and football stadium are being laid a stone's throw stone's throw n. A short distance. stone's throw Noun a short distance Noun 1. from Transamerica Center. The pending sale doesn't include development sites that Transamerica owns adjacent to its complex. The big financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firm has considered developing those sites at various times in the past. Transamerica Corp., in fact, recently contributed roughly $1 million in "seed money" toward efforts to build a $375 million football stadium near the tower, according to Sheldon Ausman, president of South Park Sports Inc., the group behind the proposed football stadium. Presumably pre·sum·a·ble adj. That can be presumed or taken for granted; reasonable as a supposition: presumable causes of the disaster. , Transamerica's holdings - like all properties in the neighborhood - would gain in value if either or both of the planned sports venues is built. Jim Auden, an analyst at Duff & Phelps in Chicago who covers Transamerica, surmised that the financial services giant aims to take capital freed up from selling its complex and reinvest it into higher-return investments. The Transamerica Center was built in phases in the late 1960s, with the hope that downtown development would migrate south to the tower. Instead, downtown moved west from Spring Street. Now, with plans abounding for sports facilities near the expanded Convention Center, the dream of a rebuilt downtown around the Transamerica Center may become more likely. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion