DEPARTMENT OF FIRE AND POLICE PENSIONS 360 East Second Street, Suite 400 Los Angeles, CA 90012 (213) 978-4545 REPORT TO THE AD HOC SPACE PLANNING COMMITTEE November 18, 2010 ITEM: F~6 Michael A. Perez, General Manager SUBJECT: UPDATE ON BUILDING SEARCH RECOMMENDATION That the Ad Hoc Space Planning Committee receive and file this report. DISCUSSION Staff is reporting to the Ad Hoc Space Planning Committee to present an update on the search for a new headquarters building. The Committee's space plan summary and objectives appear on Attachment I. Tour of Properties: Staff arranged a June 24, 2010 tour of eight properties (Attachment II). Commissioner Aldai Wertman and Commissioner Wayne Moore participated in the tour. Most of the properties presented one or more challenges that included, but were not limited to: inadequate parking; poor access to public transportation; undesirable location; inappropriate size; and/or, need for significant tenant improvements or conversion costs. Staff continues to explore potential options to overcome the challenges presented by a few of the more desirable properties to determine if they could become viable candidates for a headquarters building. City-Owned Properties: In late August 2010, Staff researched the possibility of acquiring a City-owned parking lot that could potentially serve as a parking lot for a nearby candidate headquarters building. Staff was asked to research the availability of space in a City-owned office building. Staff is prepared to discuss information gathered on these properties in greater detail at the Committee meeting. 9 th Street Property: An inquiry was made regarding a building located on 9 th Street. Staff visited the site on August 26, 2010. It does not appear to be a viable option as it is outside the Civic Center area and does not afford convenient access to public transportation.
South Figueroa Street Property Staff was asked to research a building located on South Figueroa Street. Staff visited the site on August 26, 2010 and on September 22, 2010 obtained detailed information regarding this building that appears on Attachment III. Local Warehouse In October, Staff toured a local warehouse/office building adjacent to Little Tokyo. The building is not an ideal size and lacks adequate parking, but those issues might be able to be addressed. Brunswig Building LACERS recently met with the Brunswig Building owner's office to discuss lease and parking issues. The owner's staff suggested that LACERS consider purchasing the Brunswig Building. LACERS notified LAFPP of this development and expressed interest in a potential joint purchase. The building owner has not proposed a sales price. Staff continues to monitor the real estate market in the downtown L.A. Civic Center Area and is interacting directly with brokers and office owners to pursue a suitable headquarters facility. Erika Tiedge Investment Officer MAP:TL:ET Attachments (3) Ad Hoc Space Planning Committee Page 2 November 18, 2010
Attachment I LAFPP AD HOC SPACE PLANNING COMMITTEE SUMMARY AND OBJECTIVES Current LAFPP Headquarters. 360 East Second Street (Brunswig Building): Premises: Square Footage: All of 6 th and 4 th floors and a portion of yth floor Measured 30,700 sf (includes Board Room and City Attorney Office) gross 34,874 sf Total building size is around 140,000 sq ft Lease Expires: April 14, 2012 Annual Rent: $727,500 year 60,625.40 month Objectives for New LAFPP Headquarters: Premises: Square Footage: Fully or partially occupy bldg in or near downtown L.A. civic center. Approximately 40,000 sf with adequate parking (75 spaces) Timeline: 2011/2012 Price: Amenities: Undetermined Ideally walking distance to the following: Police & Fire Headquarters Public transportation City Hall City-sponsored childcare Personnel Fire Safety Center Building Objectives
Attachment II AD HOC SPACE PLANNING COMMITTEE BUILDING TOUR AGENDA (revised) JUNE 24, 2010 A. 10:00 AM: 360 E. 2 nd Street (LAFPP Building) Meet on 6 th floor. Transportation will be provided by staff via City or personal vehicle. B. 10:20 AM: 1212 South Flower Street (near L.A. Live) Bldg Total SF: 69,986 sf Sale Price: To be determined C. 10:45 AM: 400-428 Boyd Street (adjacent to 410 Boyd Street Bar & Grill) Bldg Total SF: 48,000 sf (2 buildings) Sale Price: $6,995,000 ($145/sf) D. 11 :00 AM: 312 East 1st Street (Uyeda Building) Big Total SF: 34,320 sf Sales Price: $5,500,000 ($160/sf) E. 11:15AM: 729 East Temple Street (across from Personnel Dept.) Big Total SF: 68,000 sf Sales Price: Negotiable F. 11:30AM: 940 E. 2 nd Street (Barn Lofts by Cafe Metropol) Big Total SF: 58,000 sf Sales Price: Unknown G. 11:45 AM: 960 East 3 rd Street (Sci Arc Building) Bldg Total SF: 51,849 sf Sale Price: Unknown H. 12:00 PM: 440 Seaton Street (by Urth Caffe) Bldg Total SF: 85,392 sf Sales Price: $5,965,000 ($69.85/sf) I. 12:15 PM: 1543 Shatto Street (near MacArthur Park) Bldg Total SF: 45,322 sf Sales Price: $11,495,000 ($253.63/sf) All prices and sf are approximate.
Attachment III As of: 9/22/2010 Bank of California Computer Center Prepared by: Latitude Management Real Estate Investors, Inc. General Information Building Address: 845 South Figueroa Street Los Angeles, CA 90017 Office Property Type: Vintage: 1969 APN's: 5144-022-032 5144-022-035 5144-022-036 Building Size: 136,379 SF Combined Parcel Size: 2.52 Acres or 109,553 SF Zoning: LAC2 Building Occupancy: 0% Last Sale Date: April 27, 2004 Seller: Union Bank of California, Craig A. Poletti Buyer/Current Owner: L&R Investment Company ("L&R"), Joseph Lumer 600 South Spring Street, Suite 1700 Los Angeles, CA 90014 Sale Amount: $132/land foot or $14,461,000, reported by the Downtown Center Business Improvement District (DCBID) Historical Building InfOlmation The building was built by Max Linder and opened in 1969. The Bank of California ("BOC") was the anchor tenant and originally used the first two floors as its Southern California computer service center. In June of 1970 the bank opened a branch on the first floor, expanded its space to include the entire third floor and signed a lease until 2000. In 1978 the landlord crafted a deal with the federal General Services Administration ("GSA") and the BOC which allowed the GSA to take over two of the three floors the BOC had held while simultaneously allowing the BOC's lease on the last floor to expire in 1988. The last tenant in the building appears to be the Federal Job Information Center, which moved out sometime around 2000 or 2001. The building has been vacant since then. Historical Parking Garage Information The 900-car parking garage behind the subject building was built by Portable Parking Structures, who built several similar structures in Downtown including the structure next to Parker Center and the structure across the street from Disney Hall. Uniquely, the
As of: 9/22/2010 structures where designed to be disassembled and moved, but the feature was never employed on the subject structure nor the other similar structures in Downtown. Ownership Information In the early 1980's the building sold to a Japanese company. Later the building was sold to California First Bank, a California Banking Corporation. Union Bank of California acquired title to the building after merging with California First Bank. In late April of 2004 the building, parking garage and an adjacent parcel (827 South Figueroa Street) were purchased by L&R (http://www.tlrgc.com). the operators of Downtown's "Joe's Auto Parks" (http://www.joesautopark.com). Since purchase, L&R has used the asset as a parking facility under the 827 South Figueroa Street address. The facility serves Staples Center, TCW Building, Pantry Restaurant and the LA Convention Center. The subject building has remained vacant through L&R's ownership. L&R's Likely Play This appears to be a land hold play. The property is in a prime Downtown location, sitting between two high-rise office buildings and next to Staples Center, LA Live and the Convention Center. The structure holds little to no value. L&R is sitting on the land, content with making money from parking until someone offers them a target price on a development play. In 2004 DCBID reported L&R's purchase price as roughly $132 per square land foot or $14,461,000. It is believed that Downtown land prices are above $400 per square land foot today. If $400 per foot was applied to this property, it would trade for approximately $43,821,000. It is doubtful that L&R would only sell the parcel containing the building, as this parcel offers the majority of the Figueroa Street frontage. The red outline indicates all known parcels owned by L&R. The yellow outline indicates the parcel that the vacant building is located on. ( H"NCOD':~ SUR'liY M.n. Z-IOEl NCliCJ.;S A[lOlIUN!O WEST los M'(.Hr.~. MA. )~S69 ~~y'[r ~J)~~- ~ - M. R~ ~ ~'IOI J-or \.1(1(11 f!toci-l, PoUl :'-221 ;~T1~;;c;. ~~~ll~- Cf"~'~L()-~~ NK:110t.:S ADOlT1QN "f0...'.~t los M'l(.[LtS. AL50 LOTS 2& ArlO 27 Of',l.,[Vf.flS hu)tji'itsion 0; (\.Dey. '".. _,....... H:...'tl-~.? l!ln:.'1~ t;q.~ 27~ _ M.e- lo t :A!l '.'t.'cl...0. 21.11 M;U?~-:Hl TF~1.. JK\_]7"Q_ ~.let.. ~O.._~d If'!"f.l.nO.. ~qc;~~... ~t t:!.rt~:t8 00 1M). "." '-\.\4 "['. l,\, :... ~.,-" '. '''I :.r.,',,.f.~.! _.!
As of: 9/22/2010 Sources Various LA Times archived articles OCBIO Los Angeles County Records Prepared by Brett Slagle (310) 234-2141 bslagle@lmrei.com Latitude Management Real Estate Investors, Inc. 10880 Wilshire Blvd, Suite 1750 Los Angeles, CA 90024