U.S. Bank Tower, Once The West’s Tallest Building, Goes On Market

By: CoStar

A unit of Singapore-based real estate investor and developer Overseas Union Enterprise Ltd. has listed the 72-story U.S. Bank Tower at 633 W. Fifth St. with brokerage Eastdil Secured, sources confirmed to CoStar News. Some brokers and analysts estimate the building now could be sold for as much as $700 million, or roughly $500 per square foot, which would put it among the top sales prices in the area.

The 1.4 million-square-foot property, rounded in shape with tiered stories toward the top, was the tallest building in the downtown skyline at 1,018 feet, until Korean Air built the Wilshire Grand skyscraper at 1,099 feet a few blocks away in 2017.

Adam Tischer, vice president at brokerage Colliers International in downtown, said OUE's improvements to the U.S. Bank Tower building since they bought it more than five years ago could help the building fetch a high price.

"They're a value-add player that has added a ton of value," he said. "These guys demonstrated great timing and plunked down money right at the end of the recession to buy it, improved it... the market is better now and they deserve the profit."

OUE bought the property and a neighboring garage for almost $368 million,or $206 per square foot, in 2013 from MPG Office Trust, a successor company of building's original developer Maguire Partners, according to CoStar data.

It was about 56 percent occupied at the time of that sale, and OUE has worked to lease it up to 85 percent occupied today that includes a restaurant on one of the tops floors, according to CoStar.

The company has also added one of the most unusual features of any downtown skyscraper in the country: a glass slide attached to the outside of the building at the 70st floor. Known as the Skyslide, the 36-foot long slide allows visitors to take a joyride from the 70th floor to the 69th floor for a small fee.

The property was originally named Library Tower when it was built in 1989. In 2003, Maguire Partners signed U.S. Bancorp, the parent company of U.S. Bank, to a lease for 165,000 square feet and gave the company naming rights on the property. US Bank still occupies about 105,000 square feet in the tower.

Office buildings in downtown Los Angeles sold for around $433 a square foot in the fourth quarter last year, according to CoStar data. Among them, Cerebus Capital Management bought the Wedbush Center, at 1000 Wilshire Blvd. , for $196 million, or about $410 a square foot in the largest deal of last year. At $433 per square foot, the U.S. Bank Tower could sell for more than $620 million.

Brookfield Asset Management owns the majority of high-rise Class A office buildings in downtown Los Angeles' financial district. The company paid roughly $430 million in 2013 to buy much of MPG Office's downtown portfolio, which was the largest in the area at the time. The sale included other significant downtown high-rises such as KPMG Tower and 777 Figueroa. That sale did not include the U.S. Bank Tower.

Real Estate Finance & Investment first reported news of the listing.

OUE and Eastdil did not immediately return requests for comment.