LA’s US Bank Tower sold to World Trade Center developer

LOS ANGELES (AP) – The United States (US) Bank Tower, one of the tallest buildings west of the Mississippi River and a landmark in downtown Los Angeles, will be sold to the developer of the new World Trade Center in New York.

Singapore real estate company OUE said it will sell the 73-storey skyscraper to Manhattan-based Silverstein Properties at a discount after stay-at-home orders to combat the coronavirus reduced its leasing revenues.

The price of USD430 million was knocked down 34 per cent from OUE’s valuation of the building in its annual report last year, the Los Angeles Times reported on Monday. The deal will close in September.

The cylindrical tower with its distinctive glass-panelled crown opened in 1989.

Many business offices have closed or their employees have been working from home since Governor Gavin Newsom first issued a stay-at-home order in mid-March that closed all but essential businesses, such as markets. Other businesses have since been allowed to reopen but many offices remain closed.

“Due to the measures implemented by state governments in the US in response to the COVID-19 pandemic, the tenants in the property have reduced, or temporarily closed down, their operations, and the rental income from the property has been correspondingly affected,” OUE said in a statement.

More than a fifth of the US Bank Tower’s square footage isn’t leased to tenants, the Times said, citing real estate data provider CoStar.

File photo shows the United States Bank Tower building in downtown Los Angeles. PHOTO: AP