Tishman Speyer Properties LP, owner of New York’s Rockefeller Center, is seeking a buyer for its Campus at Playa Vista, a four-building office complex on the west side of Los Angeles.
The property will probably fetch more than $200 million, according to a person with knowledge of the matter. Offers for the four-story buildings, which have an occupancy rate of 97 percent, are due on April 2 and a sales contract is likely by the middle of that month, according to the person, who asked not to be named because the deal is private. Tenants include Facebook Inc. (FB:US) and USC Institute for Creative Technologies.
In the fourth quarter, the vacancy rate for top-quality offices on Los Angeles’ west side, which also includes areas such as Beverly Hills and Century City, was 17.6 percent, and the average asking rent was $43.72 a square foot, according to brokerage Jones Lang LaSalle Inc. (JLL:US) That compares with an 18 percent vacancy rate and $34.89 average rent for comparable office space in all of Los Angeles county.
The high occupancy and strength of the area’s office market makes it “a very good time to harvest the value that has been created,” said Rick Matthews, a spokesman for Tishman with Rubenstein Communications Inc. The company is also “looking forward to the next phase of development on an adjacent parcel.”
Christy Ingle, a spokeswoman with listing broker CBRE Group Inc., declined to comment.
Tishman Speyer, based in New York, developed the 325,000- square-foot (30,000-square-meter) complex in 2009. The campus, which opened the following year, is in Playa Vista, an area between Santa Monica, Culver City and Venice.
Among the company’s other holdings in the area are five Beverly Hills properties including UTA Plaza, headquarters of Playboy Enterprises Inc., according to Tishman’s website.
To contact the reporter on this story: Nadja Brandt in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Kara Wetzel at email@example.com