Completed in 1965 and extensively renovated in 1995, the 935,000 sq. ft. SBC Tower complex includes a 32-story office tower, an 11-story office building and two adjacent parking structures. The Class "A" office buildings were designed by renowned architect William Pereira and offer unparalleled views of downtown Los Angeles and the L.A. basin.
SBC Services will occupy 10 floors of the tower, which is also home to Transamerica Occidental Life Insurance Company. The property is currently 90% occupied and offers tenants a "city within a city" featuring a wide array of amenities, including a rooftop restaurant, a full-service food court, a bank, florist, fitness center and a state-of-the-art auditorium. New Pacific Realty and Canyon-Johnson Urban Funds had owned the property since May 2003.
"The South Park area of Los Angeles is booming, and SBC Tower is right in the middle, overlooking all the action," said Bobby Turner, Managing Partner of Canyon-Johnson Urban Funds. "As investors in underserved urban areas, it has been very gratifying for Canyon-Johnson to be part of the transformation of this area of downtown Los Angeles."
Said New Pacific partners David Margulies and Arnold Rosenstein, "We are very pleased that we were able to identify and acquire an underperforming property and then create a vibrant home for 5,000 workers in South Park. We think the positive effects of this transaction will be felt for many years to come."
Said Phil Belling, Managing Principal of LBA Realty, "We are pleased to own the SBC Tower and campus, and we look forward to building on the momentum of the previous owners and to the exciting commercial, entertainment and residential growth of the South Park area."
Canyon-Johnson Urban Funds is managed by Canyon-Johnson Realty Advisors LLC, a partnership between Canyon Capital Realty Advisors LLC and Earvin "Magic" Johnson's Johnson Development Corporation. The Funds' investment strategy is to identify, enhance and capture value through the development, redevelopment, acquisition and repositioning of urban real estate and the origination of mortgages secured by urban real estate. In addition to meeting its investment objectives, Canyon-Johnson intends to provide and foster economic opportunities for the underserved residents of the urban neighborhoods in which it invests.
New Pacific Realty Corp. is a Beverly Hills-based real estate investment and development company that focuses on value-added investments in office, residential, retail, industrial and hotel properties.
The buyer, LBA Realty, is a Southern California-based real estate investment company that owns on behalf of its real estate funds a portfolio of office and industrial properties throughout the West Coast.
Canyon-Johnson and New Pacific were represented in the transaction by CB Richard Ellis Executive Vice President David B. Doupe and Senior Vice President Lawrence H. Krasner.
Canyon-Johnson Urban Funds 9665 Wilshire Boulevard, Suite 200 Beverly Hills, CA 90212 Phone: (310) 247-2700 Fax: (310) 247-8067 www.cjuf.com / www.canyoncapital.com