TEL AVIV (Reuters) - Israel’s Harel Insurance and Finance Group and U.S. real estate investment trust Colony NorthStar acquired an office building in downtown Los Angeles for $460 million.
This reflects a price of $440 per square foot.
Harel said on Monday it will hold 45 percent of the property. The total equity in the transaction will be $160 million, of which Harel’s share will be $74 million.
The 42-story office building with 1.05 million square feet is almost 90 percent occupied. Most of the leases are linked to a 3 percent annual rent increase.
This is Harel’s fourth real-estate transaction on the West Coast in recent years.
Harel said the transaction was for the benefit of its beneficiaries as part of a commitment to diversify its investments.
Reporting by Tova Cohen