In one of the largest downtown L.A. sales of the year, the State Bar of California has bought the building at 845 S. Figueroa St. for $50 million.
The San Francisco-based State Bar bought the property for its local offices from downtown’s L&R Group of Cos., which acquired it in 2004 for $18 million as a parking garage.
The price on a square-foot basis, at about $331 a square foot, would be the second highest sale price in downtown this year, following the sale of 400 S. Hope St. for $339 a square foot, or a total of $238 million, according to CoStar Group Inc.
L&R is nearly finished remodeling the five-story, 151,000-square-foot property into a glass-clad Class B office building, near the Staples Center.
The State Bar, an administrative arm of the California Supreme Court, will move from a similar amount of space at the AT&T Center, at 1149 S. Hill St., which it has leased since the early 1990s.
Executive Director Joe Dunn said his firm looked all over Los Angeles County for new offices for the last two years, but ultimately decided on the downtown building because of its location; size; and price, which was within its budget.
“Once we made the decision to stay in the downtown L.A. area, its location was ideal for the convenience and safety of our employees, and with the surrounding amenities, almost no other option was comparable,” he said.
The organization plans to move in late next year.
Grocer Smart & Final Inc. will occupy the ground floor, after signing a 25,000-square-foot lease in May to open a store next year. L&R, which had planned to occupy some space, will not have offices in the building.
In addition, the State Bar is in escrow to sell a parking lot it owns near AT&T Center to an undisclosed buyer for $28 million.
Glendale Gain
Whole Foods Market Inc. is slated to become the first tenant in Glendale’s 207 Goode Ave. building, which has been vacant since it was built in 2009.
The Austin, Texas-based grocer signed a lease last week to expand to 45,000 square feet of office space on the top two floors of the eight-story building, owned by Dallas’ Lincoln Property Co. The 12-year deal is estimated to be worth nearly $16 million.
The company will use the space for its Pacific Southwest regional office, which covers Arizona, Hawaii, Southern California and Southern Nevada. It will move in the spring from its current Sherman Oaks location at Jamison Services Inc.’s 15315 Magnolia Blvd. building.
The deal is a significant victory for Lincoln Property, which bought the building in 2010 from developer MPG Office Trust Inc. The landlord had been close to signing several deals since then but none of them closed.
Whole Foods decided to move because it needed more space and liked the Goode Avenue building, according to a company spokeswoman. Bill Boyd, senior managing director at Charles Dunn Co.’s Glendale office who is not involved in the deal, said it signifies the growing attractiveness of the market, which has traditionally been overshadowed by neighboring Pasadena and Burbank. Recently, Glendale has become more competitive because it offers large amounts of Class A office space for low rates.
“The ability of the Glendale office market to attract and secure such a significant tenant is another affirmation that tenants appreciate the advantages and benefits of this Glendale market,” Boyd said.
Redondo Redevelopment
The Redondo Beach City Council last week selected CenterCal Properties LLC to redevelop 15 acres of its dated waterfront and pier into a bustling entertainment and shopping attraction.
After months of hearings and presentations, the El Segundo-based retail and lifestyle developer beat out finalists Lowe Enterprises Inc. and Pacifica Cos. LLC, as well as four others who had originally applied for the contract.
The beachfront, stretching from the pier to Portofino Way, is believed to be the largest waterfront development opportunity in Southern California and is already entitled for up to 450,000 square feet of shops, restaurants and offices.
CenterCal envisions the project in two sections divided by the marina but connected with a pedestrian bridge. Features would include a movie theater, eight-lane bowling alley, brewery and a hotel of up to 200 rooms. It selected Perkowitz + Ruth Architects of Long Beach as designer.
Chief Executive Fred Bruning could not be reached for comment, but at a council hearing in September he said the project will mold to its surroundings.
“Whatever is done on these 15 acres has to be part of the greater community,” he said.
CenterCal is expected to begin a series of meetings with the community to get plan feedback.
The city hopes construction on the project begins as soon as 2014.
Staff reporter Jacquelyn Ryan can be reached at [email protected] or (323) 549-5225, ext. 228.
