May 28, 2024 9:00 AM
Newmark[1] announces it has completed two separate office sales, totaling approximately $75 million, in Playa Vista, California. The first property, The Annex, a 131,942-square-foot low-rise creative office campus, sold for $50.3 million. The second property is 12901 W Jefferson Blvd, a 48,412-square-foot, highly creative single-tenant office building. Both properties are situated in the heart of Playa Vista, one of the most dynamic nodes in West Los Angeles.
Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairmen Ken White, Rob Hannan, Laura Stumm and Michael Moll represented the seller, La Salle Investment Management, in both transactions. The buyer of The Annex was the Westside Neighborhood School, while the buyer of 12901 W Jefferson Blvd was a venture between Pacshore Partners, A2 Capital Management and Glendon Capital Management.
“The sale of both assets is a reflection of the increased liquidity we are seeing in the market, especially in a desirable submarket like Playa Vista where investors and users can obtain today a comparatively very attractive basis,” said Shannon.
Located in the heart of Playa Vista’s “Agency Alley,” The Annex offers creative tenants an inspired campus experience. The fully renovated property accommodates a variety of creative uses, offering editing bays, sound stage production space, exclusive patios and private entrances. Situated on an oversized 5.14-acre lot, the property also includes the opportunity to add density via the development of an additional 160,000 square-feet. The low-rise creative campus boasts high-volume, open workspaces, with private entrances and patios that allow tenants more spatial control.
12901 W Jefferson Blvd is 100% leased to media giant IPG [2] (NYSE: IPG, S&P:A2) as the headquarters for two of its major media companies – Deutsch LA and Steelhead. Completely redesigned by HLW in 2017, the property provides IPG with mission critical studio, collaboration, editing and office spaces.
With Hollywood’s creative legacy as its backdrop and the ingenuity of Silicon Beach at its core, Deutsch LA supports blue-chip brands with an integrated approach that includes an in-house production studio. Steelhead is the largest agency-owned studio facility in the country and is designed for modern content creation featuring editorial suites, fully equipped audio bays, and an integrated sound stage, all interconnected to create one of LA’s most unique and efficient studios.
The properties benefit from an excellent location that offers easy access to the I-405, I-10, and Marina (SR 90) Freeways, the LAX Airport, as well as an abundance of amenities and the Westside’s executive housing. Playa Vista has emerged as an epicenter for technology and media growth in Los Angeles and is defined by the rapid expansion of some of the most dynamic tenants in entertainment, technology, media and content creation.
The buyer of The Annex was represented by David Kimball and Sam Devorris of NAI Capital.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of March 31, 2024, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 7,600 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about Newmark
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[1] Dba Newmark Knight Frank in California
[2] The Interpublic Group of Companies, Inc., (“IPG”) DBA Deutsch LA and Steelhead