NEWPORT BEACH, Calif. (July 9, 2019) – KBS, one of the
largest owners of commercial real estate, has announced the start of a $20
million renovation that will give Downtown Los Angeles’ iconic Union Bank Plaza
(UBP) multiple competitive community features including an entirely reimagined
two-story retail level, high-level finishes in the property’s conference
center, a spacious, modern outdoor seating area with fire pits, and a
best-in-class lobby. Located at 445 S. Figueroa Street, UBP is a Class A office
tower owned by KBS Real Estate Investment Trust II.
In addition to the building renovation, KBS has embarked on
a progressive spec suite program, building out tenant suites without a
committed tenant. These suites are extremely high-quality and designed with
downtown’s live-workplay tenants in mind. Of the first eight suites currently
under construction, two have been pre-leased.
An integral part of the DTLA skyline and one of the most
prominent Class A high-rises, UBP will be one of the first buildings in the
area to receive significant upgrades and an ambitious amenity package since the
majority were built in the 1980’s. KBS is adding to the wealth of amenities
already available such as a convenient parking garage with a 1.5/1,000 parking
ratio, multiple elevators, security, bike storage, an electric car charging
station and immediate access to the I-110 Freeway with the best ingress/egress
in the Central Business District (CBD).
“Union Bank Plaza is the type of property that literally
could not be built today. Covering a full city block, the property
strategically connects the Bunker Hill business district with the burgeoning
Figueroa Corridor. Offering easy access to both phenomenal entertainment and
key transportation routes, UBP has the location and the energy that so many
commercial tenants are looking for,” said Tim Helgeson, senior vice president
for KBS and asset manager of the property. “We could not be more excited about
the opportunity to add value in the area.”
The project’s vision was created with the help of HLW
International’s Los Angeles studio and will seamlessly blend elements of
today’s modern work environment with UBP’s classic and timeless design. This
new environment will add modern outdoor elements to support the outstanding
restaurant options available to those working in the building and the
surrounding neighborhood.
“We are honored to be working alongside KBS to reposition
this Bunker Hill icon and reestablish the property as a ‘Class A’ address,”
says Mark Zwagerman, principal and managing director at HLW Los Angeles. “The
innovative and progressive design strategies employed here seek to transform
Union Bank Plaza, celebrate the history of the space, and enhance the tenant
experience through a re-imagination of the amenities and extensive outdoor
environments. We are thrilled to be involved in such a complete
transformation.”
UBP is in one of DTLA prime locations and consists of a
701,888 square-foot office tower; a two-level retail center; a two-acre
landscaped outdoor plaza; and a four-level parking structure in the core of
DTLA’s CBD. According to the latest research from Cushman & Wakefield, the
overall vacancy rate in the CBD has continued to decline in recent years, with
vacancy rates for the fourth quarter of 2018 at the lowest they’ve been since
2011.
“There aren’t a lot of iconic buildings in Los Angeles with
the amount of outdoor space and freeway accessibility that have the potential
for this type of repositioning. As we continue our long-term commitment to the
area, we are truly excited about embarking on an extraordinary renovation that
speaks to the demands of today’s dynamic tenants who are looking for
environmentally friendly, high-quality buildings with hotel like amenities,”
said Rod Richerson, regional president, Western United States for KBS. “We’ve
gained so much knowledge from many of the other transformational renovations
that KBS has successfully completed across the country, including Portland,
Chicago, San Francisco, Seattle, Denver and many more. We plan to incorporate
the best practices and most innovative ideas into Union Bank Plaza’s
repositioning.”
KBS has engaged Swinerton Builders to lead construction
efforts. The first round of demolition work will begin in early July with a
completion date in Q1 of 2020. Renderings, floor plans, virtual tours and more
can be found on the building’s newly launched interactive site: http://www.ubpdtla.com/.
“KBS is creating an entirely new vibe at UBP,” said Justin
Collins, executive director for Cushman & Wakefield and leasing agent for
the building. “With a new garden retail setting, a park-like experience on the
plaza level including a variety of seating areas surrounded by new landscaping,
fire pits, an indoor/outdoor conference center and a stunning new lobby, UBP
will be one of the most attractive and flexible work spaces in the Downtown LA
marketplace.”
Brokerage professionals Justin Collins, Pete Collins, and
Kelli Snyder from Cushman & Wakefield serve as exclusive office leasing
agents for UBP.
For more information, visit www.ubpdtla.com.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS Real Estate Investment Trust II’s ability to invest in and manage a diverse portfolio, and the performance of Union Bank Plaza and of the Los Angeles real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS Real Estate Investment Trust II’s and/or Union Bank Plaza’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.