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One of the highest-profile entertainment office complexes in Los Angeles has been listed for sale. The property, Tribeca West, is expected to go for as much as $75 million.
The West L.A. development is a film and television postproduction haven. Tenants at the 12233 W. Olympic Blvd. office campus include Disney, HBO and NBC Studios, among others.
The seller, Broadreach Capital Partners, a Palo Alto commercial real estate investment firm, listed the eight-building facility this month. Commercial real estate broker Bob Safai, who has the listing, said real estate companies and entertainment firms have expressed interest in the property.
“It’s a blend of real estate and Hollywood cachet all in one,” said Safai, principal of commercial real estate brokerage Madison Partners. “It’s sexy and real estate — usually you don’t get the two together.”
The 151,029-square-foot, Class A complex has hit the market as commercial real estate values have begun to recover after being walloped by the recession. However, a lack of easy access to financing has made it difficult for investors to acquire trophy assets. Still, Tribeca West, situated on 2.65 acres near the intersection of Olympic Boulevard and Bundy Drive, has a lot going for it. In addition to the prime location, the property is fully leased and generates about $5 million in annual net operating income.
“It’s the go-to complex. People are treated well. That’s why we’ve been overflowing with tenants,” said David Simon, managing director of Broadreach, which also owns the CNN Building in Hollywood.
Safai said there is no asking price, but real estate industry players with knowledge of the property said they expect it to fetch at least $60 million, and perhaps quite a bit more. Bids are due next week.
The complex isn’t the only prominent Los Angeles entertainment-office campus to hit the market during the past year. Real estate investor Lionstone Group acquired Lantana Media Entertainment Campus — located less than a mile down Olympic Boulevard from Tribeca West — in December for $200 million, the largest office transaction in Los Angeles County last year. But at 463,000 square feet, Lantana, which is home to Imax, Dick Clark Prods., and Revolution Studios, is much bigger than Tribeca West.
Still, Tribeca West directly competes with Lantana for tenants. For example, Telecorps Communications, an entertainment-industry services firm that owns several postproduction companies, considered leasing space at Lantana before signing a 10-year deal for about 21,000 square feet at Tribeca West in 2007.
“We looked at a lot of different spaces, and that complex was the one we really felt was best suited for us,” said Alastair Binks, president of postproduction firm Orbit Digital, one of the Telecorps companies that maintains offices at Tribeca West. “It’s one of the few creative hubs on the Westside, and that’s what attracted us to it.”
Tenants at Tribeca West fall into two camps: Some are production companies with short-term needs for space — from eight to 24 months — and others rent offices on a long-term basis.
Other Tribeca West tenants include PostWorks, another Telecorps company; Zuffa, parent company of Ultimate Fighting Championship; and Vin Di Bona Prods., which produces America’s Funniest Home Videos.
Broadreach acquired the property in 2005 for $30 million. At the time, the development, which was built in 1980, was only 40% leased and wasn’t catering to postproduction firms. Simon said his company invested about $10 million to improve facilities to attract entertainment-business tenants.
He said Broadreach is selling Tribeca West because it typically does not hold properties on a long-term basis.
“I’d love to hold on to this forever, but our business model is to hold for three to five years,” Simon said.
Recent films completed at Tribeca include “Wall Street: Money Never Sleeps,” “Public Enemies” and “New Moon.”
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