Cathay United Bank Ltd. has reduced the size of its American headquarters and moved it a few blocks.
The commercial bank, a subsidiary of one of Taiwan’s largest financial holding companies, Cathay Financial Holding Co., signed a 10-year lease for 8,000-square-feet at downtown L.A.’s Aon Center last month. Financial terms with landlord Beacon Capital Partners LLC were not disclosed but industry sources estimate the lease value at $3 million.
The move is good news for the 1.1 million-square-foot building at 707 Wilshire Blvd., which has been struggling with a vacancy rate above 65 percent since anchor tenant Aon Corp. gave back two full floors upon signing a lease renewal last fall. The brokerage now occupies only four floors, or about 76,000 square feet, of the 62-story tower where it has building-top signage.
Cathay had occupied about 10,000 square feet at Ernst & Young Plaza, at 725 S. Figueroa St., for about a decade, but with its lease coming due wanted to consider other buildings. Ultimately, it chose the Aon building because of its high-quality space, amenities and concentration of financial firms nearby.
The landlord has been aggressively working to strike deals with new tenants and is negotiating to fill an additional 250,000 square feet of space.
“Clearly, Aon Center has become very attractive to tenants,” said Jonathan Larsen, executive managing director of Transwestern downtown who represented Cathay and Aon in their renewal deals.
Cathay will move into its space on the 32nd floor in the fall.
Transwestern Vice President Suzanne Lee also represented Cathay.
Beacon’s Andy Fishburn and Jones Lang LaSalle Inc.’s Tim Miller represented the landlord.
Sky-High Sales
The long-anticipated luxury condo tower Beverly West on the border of Beverly Hills has finally sold its first unit.
Developer Richard Lewis and his wife, Rebecca, paid $5 million for the roughly 4,200-square-foot one-bedroom, three-and-a-half bathroom condo on one of the top floors this year. They moved in last month. The unit is the couple’s fourth home but will become their primary residence, Rebecca Lewis said.
The 22-story, 35-unit project, at 1200 Club View Drive off Wilshire, was built by Emaar Properties PJSC of Dubai, which purchased the entitled property in 2007 from Fifield Cos. Emaar is well-known as the developer of the world’s tallest tower, the Burj Dubai, which opened in 2010. Beverly West is its first development in Los Angeles.
Construction on the Beverly West was delayed for nearly two years as the developer waited out the recession. Many wondered whether there would even be a market for the condos when it finally opened last summer.
Despite ample amenities and high-quality finishes, nearby luxury condo projects such as the Carlyle, Century and Montage Beverly Hills also have struggled to find buyers. For example, the Montage, which has been open for three years, is only about 60 percent leased.
In fact, the Lewises looked at those nearby condos but ultimately decided on the Beverly West.
“It’s a spectacular place; there’s nothing built around it so you get views from all angles,” said Rebecca Lewis. “The lobby is killer rockin’ cool.”
She said she was a little bit nervous about being the first tenant in the building, but so far it’s turned out well.
“It scared me a little at first because we’d be working out the bugaboos with the staff,” she said. “They do a great job with sophisticated staff.”
Chameleon Beverage
Water bottle manufacturer Chameleon Beverage Co. has decided to stay in its Commerce headquarters.
The company signed a 134,000-square-foot lease at 6444 26th St. Terms were not disclosed, but industry experts estimate the value around $5 million.
The 100-employee company moved into the location about 10 years ago with only about 26,000 square feet. It has slowly grown to take over the entire building.
Chameleon, which makes, labels and fills water bottles for a variety of brands, had considered moving to Riverside or San Bernardino counties, and scoped out new and updated space in those areas for several months.
But landlord Commerce Realty Developers of Santa Monica eventually agreed to better lease terms and will provide some assistance in capital improvements, such as adding more environmentally friendly features to the building, including skylights and low-energy lighting.
“It’s a good deal for Chameleon because they didn’t have to move and a good deal for the landlord because he’s got a good tenant,” said Jones Lang LaSalle broker Corey Spound, who represented the tenant along with colleague Zac Sakowski.
The landlord represented itself in-house.
Staff reporter Jacquelyn Ryan can be reached at [email protected] or (323) 549-5225, ext. 228.
