October 30, 2017 / 10:26 AM / in a year

Israel's Harel, Colony NorthStar buy LA building for $460 mln

TEL AVIV, Oct 30 (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)

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