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Blackstone in Discussion to Sell Los Angeles Office Towers

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The Blackstone Group L.P.BX is reportedly in talks to divest four Los Angeles office towers for over $1 billion to a group led by Douglas Emmett Inc. The news was first reported by the Wall Street Journal.

The deal, which is expected to be one of the biggest office sales in Los Angeles in recent years, will also result in a considerable expansion by Douglas Emmett, a real-estate investment trust that went public in 2006.

The four buildings have a combined 1.7 million square feet in the Westwood section of Los Angeles. While three of the towers are on Wilshire Boulevard in the Westwood commercial district near the campus of University of California, the fourth one is at 1100 Glendon Ave.

The four towers are part of the company's $39 billion buyout of Equity Office Properties Trust in 2007. While Blackstone plans to sell most of the Equity Office assets by the end of this year, the remaining assets will likely be sold in 2016.

The buildings are anticipated to generate around $51 million of income this year and are roughly 87% occupied, according to marketing materials from Eastdil Secured LLC, which is a real-estate services firm representing Blackstone in the sale.

Notably, Blackstone agreed to sell two office towers in Boston for $1.3 billion in August to a subsidiary of JPMorgan Chase & Co. JPM and Oxford Properties Group. Blackstone has been selling office assets to capitalize on the rising demand for prime properties in major coastal markets.

Currently, Blackstone holds a Zacks Rank #5 (Strong Sell). A couple of better-ranked investment management firms are Man Group plc MNGPY and Woori Bank Co., Ltd. WF . Both these stocks sport a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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