One Wilshire

One Wilshire Sells for Record $437.5 Million

Posted on July 22, 2013 ยท Posted in Property Acquisition

When it comes to property sales, never judge a building by its cover because in some cases the infrastructure can be far more valuable than the facade.

One Wilshire might lack the visual appeal of other downtown LA skyscrapers but make no mistake it’s one of the most important commercial properties in the world which is why it sold for a record $437.5 million. Though property’s large nameplate often appears in TV montage shots – for the most part nothing about this 47-year-old building is remarkable other than it’s prime location.

Few know the property houses some of the most important telecommunications infrastructure in the world because it serves as the primary terminus for fiber optic cable between Asia and the United States. Each day hundreds of millions and perhaps billions of phone calls, emails, web pages and data pass through the property’s fiber optic cables making it one of the world’s most important telecom hubs. (For comparison sake, Google purchased a building similar to One Wilshire, 111 Eighth Avenue in Manhattan for $1.8 billion in 2010).

The 663,000 square foot building wasn’t intended to be major telecom hub when it was originally constructed. Instead the growth of the internet saw tenants put in massive fiber optic systems to compete with AT&T’s switch hub at Grand and Olive and now the hub connects 300 voice and data providers.

GI Partners purchased the building from Hines REIT which paid $287 million for the property back in 2007. The sales price of $660/square foot is an incredible $400/square foot more than what was paid for the 72-story U.S. Bank Tower earlier this year. Tenants include Verizon, Sirius XM Radio, China Telecom as well as financial and law firms.

Photo credit: PlanetC1