The JV partners will collaborate with firms, Rising Realty Partners and Industry Partners, to help reposition the asset
Los Angeles, Calif – Joint venture partners Lionstone Investments (Lionstone), a privately owned, US-based real estate investment company, and Hermes Investment Management, the £29.8 billion manager focused on delivering superior, sustainable, risk adjusted returns to its clients – responsibly, have acquired One Bunker Hill, a landmark Art Deco office building located in the heart of Downtown Los Angeles.
Lionstone and Hermes Investment Management will renovate the 273,000 sq ft building, preserving its character while converting its more traditional offices into creative workspaces suitable for technology, media and entertainment companies desiring a downtown location.
Jane Page, CEO at Lionstone, said: “The resurgence of the Downtown submarket of Los Angeles, along with the unique features of this historical property, make this investment very attractive. The partnership will embark on an extensive capital renovation program to reposition the building and transform conventional office space into a creative, amenity-rich environment.”
Chris Taylor, Head of Private Markets at Hermes Investment Management, stated: “The acquisition of One Bunker Hill is consistent with our long-term strategy to capture the benefits of investing in sustainable locations within growing markets. Through the occupier-driven approach we share with Lionstone, we are confident this investment will be a success.”
This is the second investment in the joint venture partners’ investment program – a $250 million strategy – formed to invest primarily in office properties in high-growth US markets. Lionstone and Hermes Investment Management will collaborate with Rising Realty Partners (Rising) and Industry Partners, two of California’s leading real estate firms, which will respectively provide property, construction and leasing management services. In 2014 Lionstone, Rising and Industry Partners teamed up to successfully revitalize and rehabilitate the PacMutual Campus (PacMutual) in Downtown Los Angeles.
“Our previous partnership with Rising and Industry Partners culminated in one of Downtown Los Angeles' greatest success stories in PacMutual,” added Jane Page. “We strive for a similarly successful formula with One Bunker Hill.”
Originally completed in 1931 to be the home of the Southern California Edison Company, One Bunker Hill is located on the corner of Fifth Street and Grand Avenue. The 12-story building is a locally designated landmark and listed in the California Office of Historic Preservation’s Register. One Bunker Hill is one of the first all-electrically heated and cooled buildings in the Western United States.