Ocean West is shopping Westwood Terrace for as much as $105M

150,500 sf tower expected to fetch $700 psf

Apr.April 14, 2016 02:15 PM

Ocean West Capital Partners is looking to sell the Westwood office building at 1640 South Sepulveda Boulevard for almost double what it paid, The Real Deal has exclusively learned.

Kevin Shannon is leading a team of NGKF brokers advising Ocean West and partner Westbrook Partners in the sale of the building. The brokers declined to comment on the asking price, but area sources said the property, which hit the market earlier this month, could fetch up to $105 million, or $700 a square foot.

That rate wouldn’t be the highest in the submarket. Earlier this year, in what was one of L.A.’s biggest office acquisitions, Santa Monica-based REIT Douglas Emmett and partner Qatar Investment Authority purchased four Westwood office buildings for $1.34 million, or $777 a square foot.

The joint venture between Ocean West and Westbrook bought the building on Sepulveda, dubbed Westwood Terrace, in 2013 for $54 million. It paid $359 a square foot to mega-landlord Jamison Services. The partners renovated the site with a creative office lean, bringing rents from $3 to $4.50  a square foot a month on average.

The property, which was 67 percent leased at the time of sale, is now 82 percent leased.

“(The sellers) completed the repositioning, but there is still some leasing to do,” Shannon said, adding that the property, which has balconies on every floor, is different than the vertical traditional offices which dominate Westwood. “It’s West L.A. I think that’s always a great place for capital.”

Current tenants at the property include Think Factory Media and Ten by Ten Entertainment, according to CoStar.

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