U.S. Bank Tower Sold to Singapore Investors

The U.S. Bank Tower in downtown Los Angeles was sold Tuesday to a Singapore investor group for $367.5 million. MPG Office Trust, Inc., sold the largest tower in the west to Overseas Union Enterprise Limited, based in Singapore.

The U.S. Bank Tower is one of the most recognizable buildings in downtown L.A., but much of the building is currently vacant. According to real estate data probider CoStar, only 60% of the space are leased.

Reagan, a spokesperson from MPG, attributed the vacances to inefficient office design.

"That kind of an office layout really is no longer attractive to most tenants," he said.

MPG Office Trust Inc. is the largest owner of office properties in downtown Los Angeles. Selling the U.S. Bank Tower is projected to reduce debt for MPG Office Trust Inc., which has suffered from debt during the recession.

The sale is expected to generate $103 million in profit for MPG.

"MPG may live to see another day," Reagan said.