Harbor Associates JV Pays $45M for LA Office Building

Real Estate

The building at 1640 Sepulveda Blvd. underwent renovations worth more than $11 million within the last decade. Image courtesy of Harbor Associates

Harbor Associates LLC and F&F Capital Group purchased 1640 Sepulveda Blvd., a 164,683-square-foot office building in Los Angeles, for $44.7 million. Goldman Sachs Asset Management was the property’s seller, according to CommercialEdge data.

Newmark brokered the transaction, with Co-Head of U.S. Capital Markets Kevin Shannon and Vice Chairman Rob Hannan working on behalf of the seller.

The building was 80 percent leased upon closing. Tenants include Shout Factory, Fusion, ThinkFactory Media and Summit Equity Investments.

The Class A property sold for 52 percent less than its price five years ago. Goldman Sachs acquired the asset back in 2018 from Ocean West Capital Partners for $92.5 million, the same source shows.

Completed in 1987, the five-story building underwent renovations worth more than $11 million within the last decade, which included the improvement of tenant spaces, a redesign of the lobby and common areas, new elevator landings, a 70-seat ground-floor screening room and the creation of North and West facing balconies. Formerly known as Westwood Terrace, the low-rise building features four passenger elevators, controlled access and approximately 600 parking spaces.

1640 Sepulveda Blvd. marks the joint venture’s second acquisition within the last two months. In November, Harbor Associates and F&F Capital bought a 102,000-square-foot industrial portfolio in the San Diego area for $21 million.

A well-located asset

Located in West Los Angeles, 1640 Sepulveda Blvd. is at the gateway of Century City and Beverly Hills. The property is near the intersection of Interstate 405 and Interstate 10, which provide easy access across the Los Angeles metropolitan area. West Los Angeles Medical Center, University of California and an abundance of retail centers and dining options are within the property’s proximity.

Harbor’s Principal Paul Miszkowicz said in prepared remarks that more than 80,000 square feet of leases have been signed in the past three years, due to the creative office building’s location in one of Los Angeles’ strongest office submarkets.

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