L.A.’s Union Station Sold to Santa Fe Pacific Realty

Historic Union Station has been sold and its owners plan extensive improvements for the 51-year-old building and possible future development to reestablish the nearly 50-acre site as a regional transportation hub, it was announced Monday.

Santa Fe Pacific Realty said Monday that it bought the 22% interest in the downtown station that Union Pacific Railroad has owned since 1939. That’s when the railroad joined with the Southern Pacific and Santa Fe railroads to build the Los Angeles Union Passenger Terminal, as the Spanish-style, art-deco flavored depot is formally known. Terms of the deal, which involved an exchange of real estate, were not revealed.

Santa Fe Pacific Realty disclosed that in the last month it bought the 44% stake held by Southern Pacific for cash on Dec. 31. The value of the deal was not revealed. The company also said it traded real estate for the 34% stake owned by its sister company and former parent, Santa Fe Pacific Corp., formerly known as Santa Fe Southern Pacific.

The convoluted transaction is one of the more minor repercussions of the failed merger of the Santa Fe and Southern Pacific railroads.

After that merger was disallowed by the Interstate Commerce Commission in 1987, the Southern Pacific Railroad was sold and Chicago-based Santa Fe Pacific was radically restructured. Southern Pacific Railroad’s new owner, Philip Anschutz, began selling some non-rail properties, including the Union Station interest.

“Our acquisition of this landmark property will enable us to initiate an extensive improvement plan and to begin urban planning efforts aimed at reestablishing the facility as a regional transportation hub,” said Vernon B. Schwartz, chief executive of Santa Fe Pacific Realty, based in San Francisco.

Future development could include offices, stores and restaurants, said Ted Tanner, director of development for the property. But any project must await completion of construction of a Metro Rail station there, he said, adding that the station won’t be finished for about two more years.

In addition, Amtrak, which has provided passenger service at Union Station since 1971, is about to move into new facilities on the property, which would free much of the station for renovation, he said.

“Our goal here clearly is to maintain and preserve the historic character of the building,” Tanner said.