A vacant office building in greater Los Angeles has sold despite a slowdown in demand for office real estate due to the popularity of working from home.
An entity related to office investor Robert Herscu bought the 28,512-square-foot 825 N. San Vicente Blvd. building for $19 million, or about $666 per square foot, according to marketing materials and a person familiar with the deal. That's above the West Hollywood office market average of $566 per square foot, according to CoStar data.
The sale was the biggest office transaction in terms of total price this year in West Hollywood, a city located west of Los Angeles, according to CoStar data. The city features numerous entertainment and media tenants, including HBO, Live Nation and celebrity Kevin Hart's production company Hartbeat. The sale also was the second-biggest commercial real estate transaction in terms of total price in the affluent city this year.
The property may be converted into medical, coworking and health club space, along with the potential to become a hotel and restaurant, according to marketing materials. The property also is located near popular bars and restaurants along Santa Monica Boulevard.
Herscu founded The HQ Group, which is related to Los Angeles-based HQ Creative Office. The company owns and manages offices, shopping centers and high-end restaurants, according to its website.
The West Hollywood office market has a 12.3% vacancy rate, below the greater Los Angeles average of 15%, according to CoStar data. The market's average rent is $58.01 per square foot, above the greater L.A. average of $41.96 per square foot.
