A five-story Class A creative office building in Westwood sold for a massive discount.

Seal Beach-based Harbor Associates LLC and Irvine-based global investment firm F&F Capital Group acquired the 165,000-square-foot property, named Westwood Terrace, at 1640 Sepulveda Blvd. for $44.7 million.

“After several years of kicking the can down the road, we are now beginning to see distress hit the market,” said Joon Choi, a principal at Harbor Associates. “While current market conditions and the work-from-home phenomenon has dealt a severe blow to the commercial office sector, there are still compelling opportunities to find hidden gems at a deep discount to replacement.”

The deal comes out to roughly $271 per square foot. In total, the sale price is 52% lower than its last price, when the building sold in 2018 for $92.5 million.

“At our cost basis, we expect the property to perform very well for us in the post Covid-era,” Choi said, suggesting a seemingly confident outlook for the continuous demand of office space.

The property is located one block north of Santa Monica Boulevard at the gateway to Century City and Beverly Hills. It was built in 1987, and extensively renovated over the last decade.

“1640 Sepulveda is a well-appointed low-rise creative office asset that is in high demand in Southern California,” Paul Miszkowicz, a principal at Harbor Associates, said. “It also draws off the leasing velocity taking place in Century City, Los Angeles’ strongest office submarket. Given those demand drivers, more than 80,000 square feet of leases have been signed in the past three years.”

The building was 80% leased at the time of closing. Kevin Shannon and Rob Hannan of Newmark Group Inc. advised the seller.