A six-story, 222,000-square-foot Encino office building is changing hands for $89 million in a deal expected to close in the first quarter.
Douglas Emmett Inc. in Santa Monica is acquiring First Financial Plaza, 16830 Ventura Blvd., from Hudson Pacific Properties Inc., an L.A. real estate investment firm disposing of non-strategic assets to focus on higher value, lease-up development opportunities.
The building on the corner of Balboa Boulevard is 95 percent leased to professional services firms, including Marcus & Millichap and VITAS Healthcare. It also houses an Equinox Fitness Center.
Douglas Emmett’s office portfolio will total 15.5 million square feet after the deal closes. It purchased the nearby 191,000-square-foot Encino Executive Plaza in 2013 for $61 million from Kennedy Wilson, Beverly Hills real estate investment firm.
“Douglas Emmett is the perfect owner for the asset, given their high-quality portfolio and complementary holdings in the submarket,” Hudson Chief Executive Victor Coleman said in a statement.
The First Financial building was built in 1986 for $40 million by First Financial Group Inc. Hudson’s predecessor entity acquired the property, which includes a four-story parking structure, in June 2010.
The transaction is subject to assumption of an existing $43 million loan. Hudson intends to use the proceeds, along with assets from a recent Bay Area transaction with Blackstone Real Estate Partners, in a 1031 tax exchange.