The 1.3-million-square-foot Howard Hughes Center in Westchester is going to get an upgrade after it was purchased last month for $583 million.
The Blackstone Group acquired the office complex near Los Angeles International Airport as part of its purchase of 20 properties in California and Washington for $1.16 billion in a fire sale from Hines REIT Inc. over the summer. That sale was completed in November, according to CoStar Realty Information Inc.
Blackstone-owned real estate firm Equity Office said in a news release this week it plans “significant upgrades” for the center to transform it into “a creative, connected campus,” though a spokeswoman wouldn’t say how much the company intends to spend.
“Playa Vista has blossomed into one of the most sought after office locations in Southern California,” Brendan McCracken, senior vice president of leasing at Equity Office, said in a statement. “There is a tremendous opportunity to enhance the project’s value by repositioning the asset to provide workplace settings and amenities that not only meet the needs of today’s workforce, but look to meet future needs, as well.”
The Howard Hughes Center purchase involved seven properties on 45.67 acres near Sepulveda Boulevard and the 405 freeway that include a gym, a vacant lot, and five office buildings with tenants such as Pepperdine University, Sony Corp., and Univision. CoStar listed the price tag at $583 million, which is about $448 per square foot of building space.
Equity Office’s renovation of the complex’s office buildings will entail new pedestrian connectivity and wayfinding, enhanced outdoor entertainment areas, drought-tolerant landscaping, upgraded “wired” lobbies, contemporary spec suites, and customizable floor plans, the company said.
The sale and renovation mirrors developments at the neighboring Promenade at Howard Hughes Center retail hub.
Laurus Corp., based in Century City, bought the Promenade in mid-2015 for $111 million, paying about $446 a square foot for the 250,000-square-foot mall. The company said at the time it plans to spend $30 million on improvements there.
For reprint and licensing requests for this article, CLICK HERE.