Arco Towers Sold to Investor Groups

L.A. architect says a change of owners ‘is long overdue’

By Mary Forgey

LOS ANGELES—The 2.7 million-sq.-ft. Arco Towers in downtown Los Angeles has been purchased by an investor group headed by Los Angeles developer James A. Thomas. The seller was Shuwa Investment Corp.

Thomas Properties Group and the California State Teachers Retirement System are the major investors in TPG Plaza Investments, the new entity that will own Arco Towers.

Encompassing an entire city block, the twin 52-story towers are considered by many real estate experts as a prized asset in the center of the city.

“New owners for Arco Towers are long overdue,” said Scott Johnson, design partner with Johnson Fain, a downtown Los Angeles-based architecture firm.

“It's been owned and managed by a Japanese entity, and they have de-invested due to economic conditions in Japan,” Johnson added. “This is one of the last ones (holdings) they have sold.”
Arco Towers was among the largest assets purchased by the Japanese during a flurry of U.S. real estate investments in the 1980s.

“Downtown L.A. needs any help it can get to define its form and give it meaning,” Johnson added.

“L.A. has been given over to cars, and the downtown shows it. Jim Thomas is an excellent developer. This is a good thing for the downtown area.”

A history of L.A. development

This acquisition is the first transaction for the new Thomas Properties Group/CalSTRS joint venture. Thomas and his management team are veterans in downtown Los Angeles development. Through an earlier business venture, Maguire Thomas Partners built Wells Fargo Center, Library Tower and Gas Company Tower, signature buildings that comprise more than 5 million sq. ft. of prime Class A office space in downtown Los Angeles. The Thomas Properties team is developing a comprehensive renovation plan for the Arco Towers.

“The Arco Towers are a timeless architectural classic,” developer Jim Thomas said. “For 30 years the buildings have stood as a symbol and an anchor for downtown's business core. While the towers have retained a number of prestigious tenants, we intend to restore and upgrade the complex to regain its prominence among the premier office complexes in Los Angeles.

“The Arco Towers are ... a natural link between the Bunker Hill and South Park districts.”
Encompassing an entire city block bounded by Figueroa, Flower, Fifth and Sixth streets, the project was completed in 1973 as the world headquarters for Atlantic Richfield Co. and the Southern California headquarters of Bank of America.

Arco no longer occupies space in its namesake tower since being acquired three years ago by British Petroleum. The southern tower, named Bank of America Tower, continues as the bank’s Southern California headquarters.