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
Burbank Studios with Blackstone's Nadeem Meghji and Jeffrey Worthe (Google Maps)

Blackstone partners with Worthe Real Estate on 500K sf office tower

Blackstone partners with Worthe Real Estate on 500K sf office tower
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Michael Gross and the house (Credit: David M. Benett/Dave Benett / Getty Images, and Google Maps)

A former top WeWork exec asks $32M for Brentwood mansion

A former top WeWork exec asks $32M for Brentwood mansion
Victor Coleman and a rendering of the project (Credit: Gensler via Urbanize)

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion
Hudson Pacific Properties CEO Victor Coleman and Sunset Las Palmas Studios (Google Maps, iStock)

Hudson Pacific studio revenue takes hit

Hudson Pacific studio revenue takes hit
Blackstone CEO Stephen Schwarzman, and the building (Credit: Google Maps)

Blackstone pays $62M for Southeast LA warehouse

Blackstone pays $62M for Southeast LA warehouse
The Tower at Burbank at 3900 West Alameda Avenue with Jeffrey Worthe and Blackstone Group President Jonathan Gray (Getty, Google Maps)

Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank

Here’s what tenants pay at Blackstone and Worthe’s Tower at Burbank
Bob Iger, Reed Hastings and (clockwise from top left) Sunset Las Palmas, Sunset Bronson and Sunset Gower Studios (Getty, Google Maps)

Here’s what Netflix, Disney and CBS pay at their Hollywood digs

Here’s what Netflix, Disney and CBS pay at their Hollywood digs
arrow_forward_ios

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

Loading...