Downtown Market Gets $11.5-Mil Boost

LOS ANGELES-One of the world’s largest insurance and consulting companies has signed an $11.5-million lease to nearly double its office space, providing yet another boost to the Downtown market’s recovery.

Terms of the deal will provide Chicago-based Aon Corp. with an additional 94,101 sf at the 62-story 707 Wilshire complex on Wilshire Boulevard to expand its West Coast regional office. The insurer already occupies 111,000 sf in the tower.

The expansion lease runs through June 2007. As part of the agreement, owner Wells Fargo Bank also granted AON top signage at the building and the eventual right to rename the 1.03-million-sf highrise.

Wells Fargo Bank was represented by an Insignia/ESG brokerage team of R. Todd Doney, Nico Vilgiate and Greg Tippin. Robert Zelken of Jones Lang LaSalle represented the tenant in the transaction.

Built in 1974, 707 Wilshire was the city’s tallest skyscraper until Library Tower was built in 1990. Wells Fargo Bank became its sole owner in June of this year after buying out former co-owner Equitable Life Insurance Co.’s interest in the property.

Though Downtown’s vacancy factor still hovers around 20%, it has steadily been dropping as tenants are drawn to the area’s relatively inexpensive space. Some major sales have also recently taken place, with others expected to soon be announced.