Trophy properties seem to have retained their appeal despite the threat of terrorism. In the latest deal, Los Angeles-based developer MaguirePartners has purchased its partner's share in the Library Tower, a property in downtown Los Angeles valued at approximately $400 million. The purchase follows New York developer Peter Malkin's offer to buy the Empire State Building, a deal that was scheduled to close by May 1.
The firm, led by chief executive Robert Maguire, held a 25% stake in the building before buying the remaining 75% from the Dai-ichi Mutual Life Insurance Co. of Japan.
At 73 stories, the Library Tower is the tallest building west of the Mississippi River. In a bold move, Maguire reportedly renewed an insurance policy that includes terrorism coverage for his entire 12.7 million sq. ft. portfolio to protect his new 1.3 million sq. ft. investment. The carrier and terms of the deal were undisclosed.
Mezzanine financing was provided by Column Financial, a subsidiary of Credit Suisse First Boston and Capital Trust, a subsidiary of New York-based Citigroup.
Arthur Andersen occupies 12% of the property. Other tenants include Sempra Energy, Latham & Watkins and The Los Angeles Convention and Visitors Bureau.