Playa Vista’s Long-Vacant Latitude Office Property Trades for $132 Million
Clarion Partners has purchased Latitude 34, a two-building office complex within Playa Vista. The six-story, 301,642-square-foot facility occupies a 6.9-acre site and has abundant outdoor spaces and LEED Gold certification. Originally built by Lincoln Property Co. in 2010, the buildings have remained vacant after Myspace and Fox Interactive backed out of their planned move into the space in 2009. Major interior and exterior renovations (designed by Gensler) are now planned that should better position the buildings to attract tech and creative tenants that have been flocking to the 'Silicon Beach' area over the past several years.
Here's more from the Los Angeles Business Journal, by Bethany Firnhaber, July 2, 2014:
ASB Real Estate Investments said today that it had sold Latitude 34, a prominent but vacant Playa Vista 300,000-square-foot office complex, for $132.7 million.
New York real estate firm Clarion Partners bought the two-building property from ASB, which developed the complex in the 1,087-acre master-planned community with Lincoln Property Co. in 2010.
Unable to lease the space, the Washington, D.C., developer last year commissioned downtown L.A. architecture firm Gensler to design exterior and common area upgrades to make the property more attractive to creative and technology tenants.
Rick Schaupp, director and portfolio manager at Clarion, said the company will follow through with those improvements, as well as an extensive landscape overhaul designed by Valley Crest Landscape Cos.
“This acquisition gives us a significant position in one of the fastest growing sub-markets in Los Angeles,” he said.
David Quigley, chief investment officer for ASB, said the time was right to sell the property in order to invest elsewhere.
“The sale takes advantage of significantly rising office prices in the surrounding Playa Vista market,” he said.
Lincoln will continue to manage the property and, with L.A. Realty Partners, handle leasing, too.