DOWNTOWN LOS ANGELES - Downtown office giant MPG Office Trust is selling the trophy of its Central City portfolio, U.S. Bank Tower.
An affiliate of Overseas Union Enterprise Limited, a Singapore-based company, is in escrow to purchase the 72-story tower for $367.5 million, according to an MPG statement.
The pending sale of the tallest building west of the Mississippi River comes as MPG has long been struggling to reduce its debt load by selling or defaulting on properties.
Last year it defaulted on Two California Plaza, freeing the company of a $470 million mortgage on the tower, and it sold its 20% interest in the partnership that owns One Cal Plaza. The U.S. Bank Tower sale, which includes the parking facility at Fifth and Flower streets that services the Central Library, is expected to turn a $103 million profit for MPG, according to the statement.
The firm is expected to use the proceeds in part to restructure loans on its other properties, which include Downtown’s Wells Fargo Center, Gas Company Tower, KPMG Tower and 777 Tower.
The deal with Overseas Union is slated to close on June 28.