Hudson Pacific Sheds Trailer Park Office in Hollywood for $96M
Harbor Associates acquired the property for about $467 per square foot, according to a report
A 12-story office building on Hollywood Boulevard has traded hands despite new levels of uncertainty for workspace real estate investment.
Prominent office and studio REIT Hudson Pacific Properties (HPP) sold the 205,522-square-foot property to Harbor Associates. Rumors of an agreement between the two local firms arose in the first half of the year while both parties declined to confirm a sale. CoStar reported today that the asset traded for $96 million, or about $467 per square foot.
The office building at 6922 Hollywood Boulevard is known for the Trailer Park logo on top signifying Trailer Park Group’s 103,000-square-foot lease. The movie trailer and advertising tenant works with major production companies such as HBO, Netflix, Marvel and Warner Bros.
The building is along the main strip of the Walk of Fame tourism district and surrounded by many landmarks of historic Hollywood, including the Chinese Theatre, the Dolby Theatre, the Hollywood Roosevelt Hotel and the Ovation Hollywood retail center.
CIM Group sold the building to HPP in 2011 for $92.5 million, or $450 per square foot, according to a press release from when that deal closed. Current online listings show available sublease space ranging between 15,160 square feet to more than 30,000 square feet, at about $2.95 per square foot per month. The building also features 33,694 square feet of retail space.
During an earnings call at the start of the year, HPP’s president, Mark Lammas, said “tenancy or asset quality is no longer a fit for our strategy” at the Trailer Park office and three other assets it planned to sell in 2022.
“… We believe our capital is better allocated to higher yielding investments, whether it would be funding our development pipeline, making strategic acquisitions, or continuing to repurchase our stock,” Lammas said in the earnings call.
Colliers (CIGI)’ most recent office market report showed that Hollywood’s office vacancy rate has decreased for four consecutive quarters, to 21 percent, and it’s one of the few markets with year-to-date net absorption. There’s about 6.2 million square feet of office space in Hollywood, and the average asking rate for Class A space is $4.93 per square foot per month.
Gregory Cornfield can be reached at firstname.lastname@example.org.