Before our investment in Pacific Center, we combined our extensive due diligence with our deep knowledge of the local market. We anticipated the recovery of the Los Angeles Central Business District. We were confident that Pacific Center would benefit from our intensive asset management.
Pacific Center is an over 400,000-square-foot Class A Office Building with ground floor retail in the heart of downtown Los Angeles. The property is an architectural showpiece and a designated historical landmark that is frequently the site of television and movie filming. The property comprises three interconnected 12-story, 6-story and 4-story buildings from 1906. The upper nine stories of the tallest building have an H-shaped floor-plate that increases the window-line exposure. The exterior includes a decorative veneer designed in a classical style of pre-cast terra cotta and enameled concrete elements. The upper three stories of the 6-story and 4-story buildings have similar façades.
Holualoa purchased Pacific Center for $36.0 million or $89 per square foot in 2003. After investing $3 million in capital improvements, renewing several key tenants, increasing the occupancy to 74%, and negotiating several new retail leases with national tenants, Holualoa sold the property for $66.3 million or $164 per square foot in 2005.