ZIETSMAN REALTY PARTNERS

Overview
LMS-Patson Portfolio
The Nokia Buildings
Union Bank Plaza
Vornado - Patson JV Entity
The Metropolis
Edgewater at Ocean
Galleria Corporate Centre

UNION BANK PLAZA

Date	March 2005

Location	Los Angeles, CA

Asset Class	Office

Asset Size	626,000 Sq. Ft.

Client	Walton Street Capital

Retained by Walton Street Capital to sell a 100% fee simple interest in Union Bank Plaza, a 40-story office tower built in 1967 containing 625,838 square feet.

Marketing effort required diligent attention to convince investors to underwrite aggressive rents and growth rates.

Transaction required selling the DTLA story and assisting investors in understanding the various market factors behind the urban revitalization and market momentum.

Marketing was challenged by a slow Downtown Los Angeles leasing market that, at the time, had high vacancies and was exhibiting very little upward momentum on rental rates.

The transaction required a complex deal structure that included a first mortgage assumption and transaction structured as an entity sale.

Additional marketing issues included building age, some asbestos in the Property, dependency on a central plant and large capital expenditure items.

An aggressive marketing campaign resulted in offers from a broad range of potential investors including REITs, institutional investors, office funds, offshore investors and pension funds. Hines, on behalf of its U.S. Value Added Office Fund, acquired the Property for $143 million or $228 psf.