The Blackstone Group is in advanced talks to sell four Los Angeles towers for more than $1 billion to a group led by real estate investment trust Douglas Emmett.
If completed, the transaction would be one of the area’s biggest office sales. Real estate services firm Avison Young reported that west Los Angeles commercial real estate continues to see declining vacancy rates and increasing rents in the third quarter, with the most new leasing activity in class A buildings.
Blackstone’s buildings encompass 1.7 million square feet in Westwood, according to the Wall Street Journal, in an area in northwest Los Angeles with high office rents. The exit comes as Blackstone continues to sell off the remaining assets from its record-breaking $39 billion 2007 takeover of Equity Office Properties Trust.
Three of the office towers are on Wilshire Boulevard, at 10880, 10940 and 10960 Wilshire, near the campus of University of California, Los Angeles, according to Bloomberg, and the fourth building, known is at 1100 Glendon Ave.
Douglass Emmett, a Santa Monica, California-based REIT that went public in 2006, could add these buildings to its existing high-quality commercial real estate portfolio. The REIT operates 62 class-A office properties and 10 luxury apartment buildings in Southern California and Honolulu.
Eastdil Secured is the broker, according to media reports.