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350 South Grand Avenue

Southern California Gas Company Signs Largest Office Lease In Downtown LA At 350 South Grand Avenue
LEASEDOffice

Southern California Gas Company Signs Largest Office Lease In Downtown LA At 350 South Grand Avenue

350 South Grand Avenue

Building Size

198,553 SF

Asset Type

Office

Closing

Sep 12, 2024

AI

The asset involved in the transaction is an office space located at 350 South Grand Avenue, Los Angeles, encompassing a total area of 198,553 square feet. This property is situated in a prominent market area and serves as the new headquarters for the Southern California Gas Company (SoCalGas). The lease marks an important movement within Downtown L.A., specifically noted as the largest lease in the area for the year.

Summary of transaction details:

  • Property Type: Office
  • Transaction Amount: Not specified
  • Address: 350 South Grand Avenue
  • Market: Los Angeles
  • Square Footage: 198,553
  • Landlord: Shaul Kuba - CIM Group
  • Tenant: Southern California Gas Company (SoCalGas)
  • Landlord's Representatives: Geno St. John - CIM Group; Hayley Blockley & Peter Hajimihalis - JLL
  • Tenant's Representatives: Clay Hammerstein & Danny Rees - CBRE

In this transaction, SoCalGas plans to vacate its current Gas Company Tower headquarters by spring 2026, transitioning to a space that is approximately one-third smaller. An additional detail includes the company's name replacing City National Bank’s signage atop the new building, indicating a significant branding change coinciding with the lease agreement.

Players

Peter Hajimihalis

JLL

Broker

$130.7M

vol

4 deals

Broker
CBRE
CBRELender

Los Angeles Office Market Snapshot

Boundary boundary · Office · Lease transactions

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Purchase Price

Annual NOI

Loan Amount

Interest Rate (%)

Loan Term (yrs)

Down Payment (%)

Cap Rate

5.80%

Cash-on-Cash

-1.66%

Monthly Payment

$14,164

Annual Debt Svc

$169,964

Annual Cash Flow

$-11,334

DSCR

0.93