LOS ANGELES--(BUSINESS WIRE)--H.I.G. Realty Partners, Silverpeak Real Estate Partners (Silverpeak), and Rising Realty Partners (Rising) announced today they acquired The Garland Center, a 733,000 sf commercial office building and data center with a detached approximately 1,600 space (4.3:1000) parking structure, in Downtown Los Angeles.

“The Garland Center serves a unique niche in the Downtown Los Angeles submarket for tenants that appreciate the large floor plates, unrivaled connectivity, above standard power and cooling infrastructure, efficient parking, and proximity to the 7th Street/Metro Center station,” said Christopher Rising, President of Rising. “We intend to bring our expertise in new technologies, through our 5x5 Telecom subsidiary, to this asset, which is already well positioned to serve Telecom and Internet Service Providers experiencing tremendous growth from increased demand for more connectivity and data storage.”

“This property represents a unique opportunity to capitalize on the increasing global demand for CBD data center space,” said David Hirschberg, Co-Head of H.I.G. Realty Partners. “We look forward to leveraging H.I.G. Realty Partners’ real estate expertise and knowledge in the data center space to enhance the execution of the value-add business plan.”

“The Garland Center presents a compelling opportunity to acquire and revitalize an asset that serves an important role in the marketplace given its large office floor plates, abundant structured parking, and state-of-the-art data center infrastructure. The unique capabilities of our partnership coupled with the resurgence of Downtown Los Angeles positions us well to maximize the value of this exceptional property,” said Arash Dilmanian, Managing Director of Silverpeak.

Originally constructed in 1983 as an operations center for First Interstate Bank, The Garland Center is located on 7th Street just west of the 110 Freeway in Downtown Los Angeles. The building consists of nine stories of office space and three stories of subterranean, purpose-built data center space. The Garland Center’s expansive parking structure services the building, as well as surrounding offices and retail businesses.

“We are big believers in the Greater Downtown Los Angeles market, including City West, where this property is located. This market has seen significant new housing, office, and retail development over the past few years,” said Nelson Rising, Chairman and Chief Executive Officer of Rising. “This is a very large, prime property with great long-term tenants and a great investment opportunity for our company. We are very excited to be moving forward with H.I.G. Realty Partners and Silverpeak, two highly regarded real estate investment institutions in the industry.”

About H.I.G. Realty Partners

H.I.G. Realty Partners is the real estate platform of H.I.G. Capital, a leading global private equity investment firm with $19 billion of equity capital under management. H.I.G. Realty Partners manages $1.4 billion in opportunistic investments in small-to-mid cap real estate assets across property types located in the U.S. and Europe. H.I.G. Realty Partners targets the acquisition of value-add investments, employing a hands-on, operationally focused approach that seeks to generate substantial cash flow and asset appreciation through rehabilitating, redeveloping, repositioning, and rebranding assets that have been capital starved and/or poorly managed.

About Rising Realty Partners

Rising Realty Partners is a full-service real estate platform specializing in creating world-class commercial and industrial properties. Rising executives have been creating value for investors in California commercial real estate markets for over four decades by striking the perfect balance between dynamic vision and trusted best practices. Rising currently manages over 3M sf of office space and is credited with the most significant revitalization project in Downtown Los Angeles, the PacMutual Campus (PacMutual). Rising acquired PacMutual April of 2012, and immediately began a restoration to reposition the historic property into lifestyle commercial office space. Under Rising, occupancy increased from roughly 50 percent to more than 95 percent in less than two years. Rising sold PacMutual in 2015 for a per-square-foot record in Downtown Los Angeles.

About Silverpeak Real Estate Partners

Silverpeak Real Estate Partners (“Silverpeak”) is a full-service, diversified real estate investment and advisory business with more than $10 billion of gross real estate assets under management. Silverpeak acquires and manages real estate on behalf of commingled funds, separate accounts and for its own account. Since 2010, Silverpeak, together with operating partners, has acquired over $7.7 billion of real estate assets in the U.S., both on a principal basis and on behalf of various institutional investors. The Firm has invested in office, retail, multifamily, hotel, and other asset classes. Commercial real estate lending is conducted through Silverpeak Real Estate Finance to make commercial loans throughout the U.S. in the retail, hotel, industrial, and multifamily space.