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.