Hines Shows Silicon Beach Office Complex
Hines is marketing a “creative” office complex in the Silicon Beach area of Los Angeles that could fetch $350 million.
The valuation of the 350,000-square-foot Campus at Playa Vista works out to $1,000/sf. Eastdil Secured is representing Houston-based Hines.
The four-building property is 98.7% leased, with a weighted average remaining lease term of 6.1 years. Major tenants include Belkin International and the University of Southern California.
The Class-A buildings, completed in 2009, are at 12015-12045 Waterfront Drive in the master-planned Playa Vista neighborhood, which has become a magnet for technology companies. Alphabet’s Google unit is building a regional campus at an adjacent site, slated for completion this year.
Investors have been told the listed property needs no near-term capital improvements. The buildings have glass-and-aluminum exteriors, green roofs, patios, landscaped terraces, courtyards and a two-level underground garage.
Hines acquired the complex in 2013 for $218 million from its developer, a partnership between Tishman Speyer of New York and Chicago fund operator Walton Street Capital.
A nine-acre park across the street has basketball and volleyball courts, jogging trails, a playground and a band shell for concerts and events. Other tenants in the neighborhood include Facebook, Microsoft, Verizon subsidiary Yahoo and Alphabet’s YouTube.
The Silicon Beach area, encompassing parts of Los Angeles’ Westside and neighboring communities, has attracted intense investor demand. In April, Boston Properties agreed to pay Blackstone $616 million, or about $522/sf, for the 1.2 million-sf Santa Monica Business Park. Heated competition pushed bidding above the already-lofty expectations of $600 million. Eastdil is brokering the deal, which is pending. Canada Pension Plan Investment Board is in talks to partner with Boston Properties on the deal.