Office Buyback Yields Big Gain For California CU
GLENDALE, Calif. – California CU has agreed to buy back its headquarters – which it sold just five years ago to a now-troubled real estate investment company – for a cool $11 million profit.
Under the terms of the deal, the $1 billion credit union is purchasing for $33.8 million the property it sold in 2006 in a sale and leaseback for $45 million – a gain of $11 million. In addition to the credit union, other tenants include employment firm Manpower Inc., radio stations KLLA and KFSH, a handful of law firms, and State Farm Insurance.
MPG is controlled by troubled Los Angeles real estate conglomerate Maquire Properties. MPG also is seeking to renegotiate loans on two downtown Los Angeles skyscrapers, U.S. Bank Tower and Wells Fargo Tower.
The credit union, which serves employees and others associated with California public schools, has corporate offices on three floors of the building, as well as a ground-floor branch office.