San Francisco-based DivcoWest Real Estate Services has sold its interest in the historic Telephone Building in Santa Monica to an affiliate of Rockwood Capital.

Terms of the transaction were not disclosed.

DivcoWest purchased creative office and retail interests in the property in 2017 for an estimated $52.5 million.

Since acquiring the property, DivcoWest leased up the building, made renovations and secured historic landmark status for the property from the city of Santa Monica.

“Santa Monica’s growth has continued to excel in recent years, and the Telephone Building’s location and unique appeal to tenants as a jewel-box asset with landmark status will preserve its long-term value,” Mike Provost, managing director at DivcoWest, said in a statement.

“We’re proud of the opportunity to have owned it and are confident it will flourish in its next chapter under Rockwood’s stewardship,” Provost added.

Jones Lang LaSalle Inc.’s Andrew Harper, Michael Leggett, Doug Bond and Matt McRoskey represented the seller in the transaction.

The building, at 1314 7th St., is less than a mile from the beach.

DivcoWest owned a condominium interest of roughly 58,000 square feet of the nearly 92,000-square-foot building.

It was built in 1937 as a telephone communications hub and was once used by Verizon Communications Inc., which previously owned the property.

The building was divided into condominium interests in 2012. In 2015, Rios Clemente Hale Studios renovated the building.

Santa Monica is one of the hottest office markets in the county. During the fourth quarter of 2019, the vacancy rate in the city was 10.6%, down from 14.4% the previous year, according to JLL data.

The asking rate for Class A office space in Santa Monica was $6.64 a square foot, the highest asking rent of any submarket in L.A.

DivcoWest owns other West Los Angeles properties, including 331 N. Maple Drive and UTA Plaza, both in Beverly Hills.

Rockwood Capital has offices in San Francisco, New York and Century City.