LA’s US Bank Tower sold to World Trade Center developer
Price of $430 million was knocked down 34% from OUE's valuation of the building
The U.S. Bank Tower, one of the tallest buildings west of the Mississippi River and a landmark in downtown Los Angeles, will be sold to the developer of the new World Trade Center in New York.
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Singapore real estate company OUE said it will sell the 73-story skyscraper to Manhattan-based Silverstein Properties at a discount after stay-at-home orders to combat the coronavirus reduced its leasing revenues.
The US Bank Tower rises high above other downtown buildings in Los Angeles, California. (Raymond Boyd/Getty Images)
The price of $430 million was knocked down 34% from OUE’s valuation of the building in its annual report last year, the Los Angeles Times reported Monday. The deal will close in September.
The cylindrical tower with its distinctive glass-paneled crown opened in 1989.
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Many business offices have closed or their employees have been working from home since Gov. Gavin Newsom first issued a stay-at-home order in mid-March that closed all but essential businesses, such as markets. Other businesses have since been allowed to reopen but many offices remain closed.
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“Due to the measures implemented by state governments in the U.S. in response to the COVID-19 pandemic, the tenants in the property have reduced, or temporarily closed down, their operations, and the rental income from the property has been correspondingly affected,” OUE said in a statement.
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More than a fifth of the U.S. Bank Tower’s square footage isn’t leased to tenants, the Times said, citing real estate data provider CoStar.