Silverstein Properties’ Larry Silverstein with U.S. Bank Tower in Downtown L.A. (Getty, Silverstein)
Silverstein Properties’ planned $60 million overhaul of U.S. Bank Tower will look to add a creative office feel to the 31-year-old supertall.
The firm aims to make the 1.4 million-square-foot Downtown building more appealing to companies that have traditionally eschewed vertical offices for campus-like settings, according to the Los Angeles Times.
Silverstein said it would undertake a “comprehensive capital improvement plan” at the 73-story skyscraper when it closed its $430 million purchase of the property in September.
Silverstein received a significant discount — the firm paid 34 percent less than the tower’s most recent valuation by seller OUE Limited. The property is currently 73 percent leased.
The company’s long-term investment comes as the L.A. office market continues to struggle. Leasing volume in the first quarter fell to 3.1 million square feet compared to 5 million square feet in the first quarter of 2020. Overall vacancy countywide was at 17.2 percent.
Silverstein’s tower overhaul will include cosmetic changes as well as the addition of a coffee lounge and bar in the lobby, and communal tables and patios on the ground floor.
The 54th floor, a junction point for the lower- and upper-floor elevators, will be renovated into a lounge with a fireplace, co-working stations, bar, cafe and full-service kitchen.
Silverstein is doing away with the 70th floor observation deck and Skyslide, which were the work of OUE Limited. Those floors will be turned into leasable office space.
Silverstein’s head of leasing, Jeremy Moss, said his company wants the property to feel like a boutique hotel or residential building rather than an office building.
U.S. Bank Tower is Silverstein’s first investment in L.A. The New York-based firm announced it would explore more investments in the area in the future.
[LAT] — Dennis Lynch
