JV Snaps Up Westside Creative Office at Deep Discount
Harbor Associates, LLC, in a joint venture with F&F Capital Group, acquired a five-story, 164,683-square-foot Class A creative office building on Los Angeles’ Westside for $44.713 million. The Los Angeles Business Journal reported that the property sold for nearly $93 million five years ago.
“After several years of kicking the can down the road, we are now beginning to see distress hit the market,” said Harbor principal Joon Choi. “While current market conditions and the work from home phenomenon has dealt a severe blow to the commercial office sector, there are still compelling opportunities to find hidden gems at a deep discount to replacement. At our cost basis, we expect the property to perform very well for us in the post-COVID era.”
Built in 1987, 1640 Sepulveda Blvd. was extensively renovated over the past decade with more than $11 million in renovations that went to improved tenant spaces, north and west facing balconies, redesigned building lobby and common areas, a 70-seat ground floor screening room and new elevator landings. It was 80% occupied at the time of closing.
Kevin Shannon and Rob Hannan of Newmark advised the seller.