Mani Bros. Buy Downtown’s Former Home Savings Tower
Demonstrating confidence in the slow-to-recover downtown Los Angeles high-rise market, Simon and Daniel Mani have purchased the 24-story former Home Savings of America Tower at 7th and Figueroa streets for a price estimated in the mid-$40-million range.
The deal, which closed Monday, marks the second trade of a late-vintage downtown high-rise in the last few weeks. While Southland real estate experts have been encouraged that some investors are betting on a downtown recovery, the estimated purchase price nevertheless reflects prevailing downtown rent levels--still well below comparable rates in top Westside and Burbank-area locations.
Downtown real estate sources estimated that the tower that originally housed Home Savings’ executive offices sold for $170 to $180 per square foot of rentable space (the real estate industry’s standard valuation measurement), compared with the $250 and even $300 or more investors have occasionally paid for top Westside properties over the last year or so.
The local Mani family’s purchase of the 1988 tower from Japanese investors contrasts with recent deals in which large players have picked up similar buildings for much less than replacement costs.
Most recently, the giant California Public Employees’ Retirement System pension fund last month teamed up with its locally based advisor, CommonWealth Partners, to purchase 801 S. Figueroa for about $200 per square foot.
The Cushman & Wakefield brokerage team that handled the Home Savings transaction for seller K&T; 660 Figueroa Partners would say only that the buyer and seller agreed to keep the price confidential.
Operating as Mani Bros., the Manis have supplemented their baked-goods empire with several real estate acquisitions over the last three to four years. The group has purchased office buildings in Culver City, Santa Monica and Sherman Oaks.
