Harbor and F&F pay $45M for Westwood Terrace office building

Harbor Associates and F&F Capital Group have picked up a 164,700-square-foot distressed office building in Westwood for $44.7 million — nearly 52 percent less than it traded for five years ago.

The Seal Beach- and Irvine-based investors bought the five-story Westwood Terrace complex at 1640 South Sepulveda Boulevard, the Commercial Observer reported. 

The seller was New York-based JP Morgan, which acquired the property in lieu of foreclosure from a partnership led by New York-based Goldman Sachs. 

The deal works out to $271 per square foot.

The Goldman Sachs-led partnership bought the building in 2018 for $92.5 million, or $562 per square foot.

A $60 million loan from JPMorgan was tied to property, for which the unidentified partnership failed to make payments or secure refinancing, resulting in the lender taking control of the building, an unidentified source familiar with the sale told the Observer.

Harbor and F&F acquired the deed from JPMorgan in lieu of foreclosure, the source said. 

The building was 80 percent leased at the time of sale this month.

Westwood Terrace, built in 1987 a block north of Santa Monica Boulevard, was sold to the Goldman Sachs-led group by Downtown Los Angeles-based Ocean West Capital Partners and New York-based Westbrook Partners, according to the Observer. They remained invested and continued to manage it after the sale.

Ocean West and Westbrook had purchased the building from Koreatown-based Jamison Services in 2013 for $54 million, or $328 per square foot.

Westwood Terrace adds to several other Southern California office buildings just sold for a major loss.

Before Christmas, Beverly Hills-based Carolwood, along with investors Daniel Abrams and Adam Tischer, bought the 1.1 million-square-foot Aon Center at 707 Wilshire Boulevard in Downtown for $147.8 million, or $134 per square foot, according to The Real Deal.

The seller was Shorenstein, which bought it in 2014 for $268.5 million, or $244 per square foot.

— Dana Bartholomew

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