Starwood Strikes Deal for Santa Monica Offices
Starwood Capital has agreed to buy two of the four buildings at a “creative” office complex in Santa Monica, Calif., from a Brightstone Capital partnership for about $220 million.
The transaction follows the partnership’s March sale of two other buildings at the Lantana Media Campus to Skydance Media, the production company of movie mogul David Ellison. Eastdil Secured is the broker of both transactions.
The two buildings being acquired by Miami Beach-based Starwood encompass 200,000 square feet, putting the per-foot valuation at about $1,100. They are fully occupied under long-term leases by Beachbody, a fitness-program company, and Sinclair Broadcast Group’s Tennis Channel. The building at 3003 Exposition Boulevard was developed in 2000 and features a screening room. The other, at 3301 Exposition Boulevard, was completed in 2008 and has a LEED gold designation.
Ellison’s production company was initially in talks to purchase all four buildings for roughly $520 million, or $1,088/sf. But it ended up buying two, totaling 270,000 sf, for $346 million, or $1,283/sf. That worked to the Brightstone partnership’s advantage, because the combined price of the two sales is roughly $45 million more than Skydance might have paid for all four buildings.
The buildings acquired by Skydance are at 2900 and 3000 Olympic Boulevard. The company was already a tenant in one and plans to take over the entire building. Dick Clark Productions anchors the other building.
The four buildings are on either side of the Metro Expo light-rail line connecting Santa Monica to downtown Los Angeles. New York-based Brightstone and its local partner, Artisan Realty, bought them in 2016 from Atlanta-based Jamestown for $403 million, or $843/sf. Eastdil also brokered that deal. The 12-acre Lantana Media Campus includes a fifth building that is owned by the National Academy of Recording Arts & Sciences.