One Wilshire Sets Record

One Wilshire is not an obvious contender for most valuable building in the Downtown skyline, but a recent sale concluded just that.

DOWNTOWN LOS ANGELES - It may not look like a trophy office building from the outside, but it’s what’s inside that makes One Wilshire the most valuable office property in all of Los Angeles.

The 30-story building at Wilshire Boulevard and Grand Avenue is one of the three most important telecommunications data server hubs in the world. That’s why Menlo Park investor GI Partners agreed to pay seller Hines Real Estate Investment Trust, Inc. $437.5 million for One Wilshire.

The sale represents the highest price per square foot — $660 — ever paid for a Los Angeles County office property. The deal, first reported by the Los Angeles Times, also represents the largest office sale in the county since 2007, when now defunct Maguire Properties paid nearly $3 billion for a package of Downtown and Orange County towers.

One Wilshire is currently 94% occupied, primarily by telecommunications entities that value the fact that the building is a major endpoint for fiber-optic cable routes that connect North America and Asia, said broker Kevin Shannon of CB Richard Ellis, who represented GI Partners in the deal.

“This is main and main for this industry,” Shannon said. “The fiber connection and connectivity is irreplaceable.”