WEST LOS ANGELES — Hudson Pacific Properties Inc. has agreed to acquire a 500,475-square-foot office tower in West Los Angeles for $311 million. A fund managed by Blackstone is selling the Class A property, known as the Brentwood Center or Wells Fargo Center, which is located at 11601 Willshire Blvd.
The building, which is currently 83 percent occupied, has served as Hudson Pacific’s corporate headquarters since 2010. Hudson leases 20,000 square feet in the building, which also includes tenants First Pacific Advisors and Genter Capital, according to CoStar.
The office tower was built in 1983 and features a travel agency, Trimana Café, on-site property management and full service gym, according to Loopnet.
Hudson Pacific recently sold One Bay Plaza in Burlingame, Calif. for $53.4 million and plans to use the proceeds to help pay for the acquisition. The company also expects to be repaid on a $28.5 million note for the Broadway Trade Center. The company expects to fund the remaining balance with a combination of funds from its revolving credit facility, project financing and private placement proceeds.
“Our team’s long history of occupancy and prior ownership of 11601 Wilshire Blvd. provided a competitive edge to understanding the value creation potential for this asset,” says Victor Coleman, chairman and CEO of Hudson Pacific. “Our success in selling One Bay Plaza and securing the timely repayment of our Broadway Trade Center Note adds to our already ample capital sources to fund this transaction.”
“The completion later this year of the previously announced sale of our 12655 Jefferson property in Playa Vista for $80 million will likewise provide additional disposition proceeds to repay interim financing used for the purchase of 11601 Wilshire Blvd.,” he adds. “Indeed, we expect to identify the 11601 Wilshire Blvd. acquisition as the replacement property for 12655 Jefferson pursuant to a 1031 reverse exchange.”
The acquisition of the Brentwood Center property is expected to close by the end of July.
Hudson Pacific’s (NYSE: HPP) stock closed on Monday, June 6 at $27.97 per share, down from $29.89 a year ago.
— Christina Cannon