Hudson Pacific is buying its West LA headquarters building from Blackstone for $311M

Los Angeles /
Jun.June 06, 2016 11:27 PM

Hudson Pacific Properties is making another L.A. acquisition, this time to the tune of $311 million, or $621 a square foot.

The West L.A. firm has entered into an agreement to acquire a 500,475-square-foot Class A office tower at 11601 Wilshire Boulevard in West L.A., at the border of Brentwood, from a fund managed by Blackstone. 

Blackstone bought the building, dubbed the Wells Fargo Center, for about half the price — $163.8 million — in 2006.

The building is currently 83 percent leased. Hudson takes 20,000 square feet in the building, which also has First Pacific Advisors and Genter Capital as tenants, according to CoStar. Average rent is $4.33 a square foot, according to CoStar, topping Brentwood’s $4.06 average in the first quarter.

The property has served as Hudson Pacific’s corporate headquarters since its July 2010 initial public offering.

The REIT plans “enhanced operations, the lease-up of vacant space, and re-leasing of space at market rents above those currently in place,” according to a company release.

“Our team’s long history of occupancy and prior ownership of 11601 Wilshire Boulevard provided a competitive edge to understanding the value creation potential for this asset,” said Victor Coleman, Hudson Pacific’s CEO. “[We] expect to identify the 11601 Wilshire Boulevard acquisition as the replacement property for 12655 Jefferson pursuant to a 1031 reverse exchange.”

The Real Deal recently reported that Hudson was selling the Landing in Playa Vista to the Mani Brothers for $80 million. The proceeds from that sale, as well as the sale of a property in Burlingame and the repayment of a note on Broadway Trade Center are expected to fund its West L.A. purchase.

The acquisition is expected to close by July 31, 2016.


Related Articles

arrow_forward_ios
Reese Witherspoon (Getty)
Reese Witherspoon sells Brentwood mansion for $21.5M
Reese Witherspoon sells Brentwood mansion for $21.5M
Hudson Pacific Properties' Mark Lammas and Harout Diramerian (Hudson Pacific, iStock, RIOS)
Hudson Pacific posts loss, downplays Netflix woes
Hudson Pacific posts loss, downplays Netflix woes
11677 - 11683 Goshen Avenue (Redfin)
Brentwood apartment building finds a buyer
Brentwood apartment building finds a buyer
Hudson Pacific’s Chris Pearson and CBRE’s Lewis Horne (Hudson Pacific, CBRE, iStock)
Hudson Pacific, CBRE eye West Coast hubs with impact fund for women, ethnic minorities
Hudson Pacific, CBRE eye West Coast hubs with impact fund for women, ethnic minorities
Ken Kahan, chief executive officer, California Landmark Group in front of 7928 Hollywood Boulevard (left) and 1168 South Barrington Avenue (right) (Getty Images, Realtor.com, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
California Landmark scores $85M refi on LA apartments
California Landmark scores $85M refi on LA apartments
11672 San Vicente Boulevard in Brentwood (Google Maps)
Brentwood retail complex fetches $2,000 psf
Brentwood retail complex fetches $2,000 psf
These are LA’s top 10 residential deals of 2021
These are LA’s top 10 residential deals of 2021
These are LA’s top 10 residential deals of 2021
Jim Belushi offloads Brentwood mansion for $30M after years on the market
Jim Belushi offloads Brentwood mansion for $30M after years on the market
Jim Belushi offloads Brentwood mansion for $30M after years on the market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...