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WOODLAND HILLS, CA-An investment partnership sponsored by Boston-based Beacon Capital Partners has paid $134 million for the Trillium office towers in Woodland Hills, the latest—and largest—transaction in a string of recent purchases in the hot Warner Center area.

The twin 16-story office towers stand in the 6300 block of Canoga Avenue. They were purchased by Beacon Capital Strategic Partners LP, a $287-million fund that was started about two years ago.

The nearly 600,000-sf office project is almost fully leased to tenants that include insurer Blue Shield of California and lender Ryland Mortgage Co. It includes a Cheesecake Factory restaurant, a fitness club, other retail space and large parking structure. As part of the deal, Beacon also acquired the land under the adjacent Hilton Woodland Hills & Towers.

The LA office of Secured Capital Corp. began marketing the property on behalf of the giant California Public Employees Retirement System about six months ago. Beacon Capital’s top West Coast executive tells GlobeSt.com that the Trillium project is a perfect match for the fund’s investment objectives.

“We look for A or A-minus properties in primary markets that have knowledge-based economies and can be purchased at a price that is significantly below replacement cost,” says Jeremy Fletcher, chief executive of Beacon’s LA-based Western Region operations. “We were able to acquire this property at $195 a foot, which was compelling when its replacement cost is $270 a foot.”

Fletcher also notes that the Warner Center area is among the relatively few LA-area submarkets where rents are still rising, in part because it does not have major exposure to the battered dot-com industry. Statistics provided by CoStar Group Inc. show a vacancy factor (including available sublet space) of a modest 10.5%, and that rents in the general area have climbed by more than 7% since the start of this year.

Other investors have taken note. Barely a month ago, LA-based Bentley Forbes Group paid $120 million for Warner Center’s 517,638-sf 21st Century Plaza office project. A day earlier, international real estate conglomerate Grosvenor paid $40 million for the 252,973-sf Warner Corporate Center office complex a few blocks away.

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