Waterbridge Capital Sells Union Bank Building in Los Angeles for $80 million
Joel Schreiber’s Waterbridge Capital has sold the 40-story Union Bank Plaza building in Downtown Los Angeles to Southwest Carpenters Pension Trust for $80 million, a discounted price following a significant lease termination payout.
Deal Details
The 701,900-square-foot tower at 445 South Figueroa Street was sold in an all-cash deal, with the buyer contributing 20% equity financing and a 10-year interest-only loan from Prudential Financial. According to Newmark, brokered both Schreiber’s purchase and sale.
The deal works out to $114 per square foot, a new low price reset for offices in Downtown. Waterbridge bought the building in March last year for $110 million or $158 per square foot.
Background
Union Bank, the tower’s namesake tenant, delivered a "large lease termination payout" to Waterbridge, offsetting the decline in value. The compensation package was a result of Union Bank’s decision not to renew its lease of 240,000 square feet.
Broker Comments
"This was a win-win transaction for the buyer and seller," said Kevin Shannon of Newmark in a statement. "The buyer acquired an institutionally renovated office tower at approximately $100 per square foot, factoring in the value of the substantial adjacent development parcel that provides future upside potential."
Sale to Pay Off Debts?
It is uncertain whether Schreiber, known for his investment in WeWork, will utilize the proceeds from the building’s sale to pay his debts. Starwood Capital in Miami has been endeavoring to collect nearly $90 million in judgments related to Schreiber’s default on loans for Broadway Trade Center in Downtown Los Angeles.
Conclusion
Waterbridge Capital’s sell-off of the Union Bank building marks a significant rebalancing of its holdings. The deal underscores the competitive nature of the Southern California commercial real estate market, where investors are striving to maximize returns in uncertain times.
FAQ
Q: What price did Waterbridge Capital buy the Union Bank building last year?
A: $110 million or $158 per square foot
Q: What does the sale price of the Union Bank building work out to per square foot?
A: $114 per square foot
Q: Who is trying to collect nearly $90 million in judgments from Waterbridge Capital?
A: Starwood Capital, a Miami-based firm that loaned money to Joël Schreiber, CEO of Waterbridge.
