A property in downtown Los Angeles has traded hands at a significant reduction from what it previously traded for more than 10 years ago. According to a report from The Real Deal, The Swig Company sold the 216,000 square foot office building for $20.5 million, or just $94 per square foot. The property was acquired by Izek Shomof.
The property is located at 617 West 7th St. and served as the previous headquarters for Union Oil. The property was constructed in 1923 and then later underwent redevelopment in 2000. The building was first listed late last year with marketing handled by brokerage firm JLL.
At the time the property was listed, the property was 39 percent leased, with Walgreens occupying approximately 16,000 square feet. The retailer holds a lease at the site until 2084. Marketing materials from JLL also suggested that part of the building could undergo residential conversion while these leases are in effect.
The property is situated within downtown Los Angeles’ Financial District. The highly walkable area is home to a number of retail and dining amenities as well as the 7th Street/Metro Center Station. Interstate 110 is also just a short commute away from the site.
When the property last traded in 2011, it sold for $38.8 million, or about $175 per square foot.
Founded in 1936 and based in San Francisco, The Swig Company is an investment firm with a focus on residential and office properties. The Swig Company’s portfolio includes approximately 7.5 million square feet of commercial real estate, with numerous properties located across Northern and Southern California, New York and Seattle.
