ENCINO, CA—Douglas Emmett has closed on the purchase of the First Financial office building from Hudson Pacific Properties for $89 million. In an earlier story, GlobeSt.com reported that Hudson Pacific agreed to sell the property to Douglas Emmett as part of the disposal of its legacy assets.

“Since acquiring First Financial as part of our 2010 IPO, we've created significant value through renewals, as well as new leases signed with high-quality tenants like Equinox,” Victor Coleman, Hudson Pacific's chairman and CEO, tells GlobeSt.com. “The reality is that Encino doesn't typically attract the type of high-growth companies—mostly technology, media and entertainment-focused users here in L.A.—we target as part of our investment strategy. The sale of First Financial is a perfect example of how we dispose of non-core assets to recycle capital into higher-value transactions, in this case our pending EOP Northern California Portfolio acquisition.”

Hudson Pacific originally acquired the property for $60.3 million in June 2010. From this sale, it earned $46 million in proceeds from the sale after repaying a $43 million loan previously secured by the property. Hudson Pacific plans to use the proceeds from the sale to complete a 1031 exchange for Equity Office Properties' San Francisco Peninsula and Silicon Valley portfolio from Blackstone Real Estate Partners V and VI.

Located at 16830 Ventura Blvd. in Encino, the 227,000-square-foot multi-tenant property traded at $392 per square foot. The property was originally built in 1986, and sits on a 3.7-acre site. It is 94% occupied with a tenant mix that includes Pepperdine University. Douglas Emmett did not respond to requests for a comment.