Hudson Pacific Properties Inc. has acquired the Santa Monica offices of Google Inc., as the local real estate investment trust seeks to expand on the Westside.
Last month, Hudson bought the nearly 46,000-square-foot three-story building at 604 Arizona Ave. from Noncom Properties, a group of undisclosed local investors who acquired it in 2004.
Financial terms were not disclosed, but industry sources pegged the deal at roughly $22 million. The building sold for $12 million in 2004, and was assessed at $12.9 million in 2009. Hudson declined comment through a spokesman.
This will be the 14th addition to Hudson’s portfolio, which comprises 4 million square feet of creative- and tech-focused buildings from San Francisco to San Diego, including Hollywood’s Sunset Gower Studios and Sunset Bronson Studios. However, until now, the REIT only had two Westside properties: a three-story office building with two sound stages in Culver City and a six-story office building in Beverly Hills.
“The buyer is getting involved with Westside creative properties because they already run proper studios further east,” said broker David Wilson of Lee & Associates West Los Angeles who represented Hudson. “We think the building is the best overall creative building in Santa Monica. The rub to the deal is that Google’s lease expires in a year.”
Google has occupied the entire building since 2005, but the Silicon Valley search firm has signed a lease to move in April into the Binoculars Building designed by Frank Gehry on Venice’s Main Street.
Leasing the space shouldn’t be a problem, though, as Santa Monica was the only city in Los Angeles County to post a vacancy rate below 10 percent last quarter. In fact, Hudson has already received four proposals from companies seeking to lease the space when Google moves out, Wilson said.
Noncom Properties was represented by Lee & Associates West Los Angeles broker Andrew Wilson, the brother of Hudson’s representative.
In the priciest L.A. condo sale of the year, a unit in the Montage Beverly Hills sold for $13.8 million, or $2,400 per square foot, last month to an undisclosed buyer.
It was the 11th of the five-star hotel’s 20 condos to sell and the third to sell above the $10 million mark. The condos have been on the market for more than two years.
The unit is a 5,700-square-foot penthouse with four bedrooms and six-and-a-half baths, as well as a walk-in wine closet and terraces with panoramic views.
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