US Bank / Figueroa Courtyard
US Bank / Figueroa Courtyard
Landlord Representation 271,000 SF
201-281 S. Figueroa Street, Los Angeles, CA
Challenge
In November, 2009, the FDIC seized the assets of California National Bank and sold them to US Bank. One of the assets was a 5-building, 271,000 sf office project in Downtown Los Angeles called Figueroa Courtyard. CalNational occupied much of the project for its corporate HQ, but US Bank needed to determine how much of that space it needed for its operations, as well as identify which spaces to keep or lease to other tenants. Charles Dunn Company previously handled the leasing at the project and was engaged to provide an analysis of the most suitable space for the bank’s operations and the spaces most marketable to new tenants. US Bank was also required to pay rent to the ground lessor for all space that it occupied in the project, so vacating and re-leasing this space was imperative.
Solution
- US Bank needed to consolidate their space at the project from over 70,000 sf to just 25,000 sf, cutting CalNational staff from over 300 to just 55 employees
- Re-leasing 45,000 sf of bank-occupied space would save the bank $150,000 per year in payments to the ground lessor
- CDC offered the remaining space on the open market to new tenants after expanding and renewing existing tenants in the project
- Leased 40,000 sf of former CalNational space in one year with minimal improvement expense for the bank; also facilitated the sale of the furniture
Result
- New 10-year, 15,000 sf lease renewal with Associated Press worth $5.5M
- Relocated and expanded ABC Legal into a new 5-year lease for 9,000 sf, valued at $1.3M
- Represented CCF and the landlord in a new 10-year lease for 27,000 sf, valued at $8M
- Represented One Legacy in a 10,000 sf expansion and 40,000 sf lease renewal worth $10M
- Five other lease transactions concluded in the project, totaling 12,000 sf