Originally constructed between 1908 and 1926, the Pacific Mutual Life Building is an historic, three-building, interconnected twelve-story office campus with ground floor retail, centrally-located in Downtown Los Angeles adjacent to Pershing Square.
At the time of acquisition, roughly 35% of the building had already undergone improvements with creative build-out. Downtown Los Angeles is experiencing a resurgence due to the concentration of a young, affluent, educated workforce, and added infrastructure for mass transit and new housing and retail developments.
The net new demand for creative office product was expected to significantly outpace new demand for traditional Class A. Lionstone saw a market where creative office supply was already considerably constrained compared to traditional Class A space, and we implemented a strategic repositioning of PacMutual’s ground floor retail concepts and completed the renovation of existing office space to meet the needs of evolving tenant preferences. In addition, wireless technology was applied throughout the property and Platinum LEED certification was obtained. At the time of sale, PacMutual was perceived as the best-in-class creative product in an A+ location and was achieving the highest office rents per square foot in downtown.