Wells Fargo Bank Renews Lease at Namesake TowerThursday, September 13, 2012
Wells Fargo Bank has signed a 10-year lease renewal at Wells Fargo Tower in downtown Los Angeles, the building’s owner, MPG Office Trust Inc., said Thursday.
The struggling real estate investment trust said that Wells Fargo agreed to renew for its current 291,000 square feet of office, retail and museum space at the Bunker Hill landmark. But the unit of San Francisco’s Wells Fargo & Co. does have the option, over the next three years, to contract by 89,000 square feet. It also has the option, over the next two years, to expand by 25,000 square feet.
“Maintaining one of the premier, multinational financial services companies as a tenant at Wells Fargo Tower was an important objective of our company,” MPG Chief
Executive David Weinstein said in a statement. “The lease renewal demonstrates Wells Fargo’s long-term commitment to downtown Los Angeles and to MPG Office Trust.”
MPG, considered the largest owner and operator of Class A office properties in L.A.’s Central Business District, said in July that it may consider selling its entire 8.2 million-square-foot office portfolio as soon as next year. After making major acquisitions just prior to the recession, the REIT got into financial problems during the downturn and has been selling or giving up non-core properties.
Besides the Wells Fargo Tower at 333 S. Grand Ave., its downtown buildings include the Gas Co. Tower at 555 W. Fifth St.; U.S. Bank Tower at 633 W. Fifth; KPMG Tower at 355 S. Grand Ave., and 777 Tower at 777 Figueroa St. It has a 20 percent stake in One Cal Plaza at 300 S. Grand Ave.
Shares closed up 8 cents, or 2 percent, to $3.68 on the New York Stock Exchange.