In a significant shift for downtown Los Angeles, the county is set to acquire the Gas Company Tower, a prominent 52-story skyscraper, despite vocal opposition from one of its own supervisors. The Los Angeles County Board of Supervisors approved the $200 million purchase with a 4-1 vote, signaling a major transformation in the county’s administrative infrastructure.
The decision comes amid mounting concerns about the current county headquarters’ structural integrity. The Kenneth Hahn Hall of Administration, a 1960s building, has been deemed potentially vulnerable to severe earthquake damage. Estimated retrofitting costs running into hundreds of millions of dollars have made the prospect of relocating to a newer, safer building increasingly attractive.
County Chief Executive Fesia Davenport championed the acquisition, arguing that the move will generate substantial financial savings. The tower, located at 555 W. 5th St., represents a remarkable bargain, having been purchased at approximately $137 per square foot—a steep discount from its 2020 appraised value of $632 million.
The building’s architectural significance cannot be overlooked. Designed by Richard Keating to appeal to corporate America, the Gas Company Tower was once considered one of the city’s most prestigious office spaces. Now, it stands as a potential solution to the county’s space and safety challenges, especially in a post-pandemic landscape where office dynamics have dramatically shifted.
Supervisor Janice Hahn vehemently opposed the purchase, characterizing it as “robbing Peter to pay Paul” and warning that it would effectively dismantle downtown’s civic center. She expressed concerns about moving county workers into what she described as a “soulless” office tower on Bunker Hill.
Interestingly, the acquisition comes at a time of significant disruption in the downtown office market. The building’s previous owner, an affiliate of Brookfield Asset Management, defaulted on its debt and had the property placed in receivership. Major tenants like Latham & Watkins and Deloitte will continue to occupy the space under the county’s ownership.
The county currently manages approximately 16.5 million square feet of office space across 38 departments, with substantial annual expenditures on leased properties. By consolidating operations and moving into the Gas Company Tower, the county anticipates avoiding ongoing rental costs and expensive retrofitting of aging buildings.
Southern California Gas Co., the tower’s namesake tenant, is already planning its exit. The utility has signed a long-term lease in another nearby skyscraper and expects to relocate by spring 2026, further facilitating the county’s plans to occupy the a portion of property.
While the purchase means the building will be removed from tax rolls—its previous annual property tax bill exceeded $7.1 million—tenants will still contribute through a “possessory interest tax.” The tower itself is reportedly in good condition, with an estimated remaining useful life of at least 35 years.
The transaction represents a strategic move in a changing urban landscape, balancing practical needs for safe, efficient workspace with the economic realities of a post-pandemic real estate market.
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