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10/11/16
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In a blockbuster lease that signals LA’s rapidly gentrifying Arts District has now become a serious option for major creative space users, Warner Music has agreed to lease the entire, 275k sf Ford Motor Factory building that had just been renovated by Shorenstein Properties. The entertainment biz firm signed a 13-year deal said to be worth around $130 mil. The transaction includes an option for an additional 10 years,
PHOTOS: www.Shorenstein.com |
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Warner Music will occupy the entire building, located at 777 South Santa Fe Ave, east of Alameda St and north of the I-10. Warner, which will relocate from Burbank, will be the Arts District’s first large-scale office tenant. The new location will serve as the company’s West Coast headquarters.
Shorenstein, which acquired the four-acre property for $37 mil in 2014, renovated the former industrial site into a modern, Class A creative office structure. Warner is planning its own significant improvements to the property that could very well reach as high as $50 mil. The T.I. work is expected to include office space, recording studios, lavish outdoor common spaces and a garage that will hold 750 cars.
The building was originally constructed by Ford Motor Co back in 1912 for the manufacture of their Model T’s and other vehicles. After Ford, major companies such as U.S. Rubber, Lockheed Aircraft and Imperial Toy Co followed as occupants of the property.
CBRE’s John Zanetos, Todd Doney, Rob Waller, Chris Penrose and Phil Ruhl negotiated the lease on behalf of New York-based Shorenstein Properties. Matthew Miller of Cresa Los Angeles repped Warner Music in the deal.
Downtown Los Angeles has seen a flurry of new projects and redevelopment of existing buildings across all neighborhoods, including the historic core, the financial district and South Park. Since 1999, Downtown has received more than $7.3 bil in residential, $1.2 bil in arts & entertainment, and $2.6 bil in civic and institutional investments.
For an exciting video tour of some of some of the current development activity in Los Angeles’ Arts District, and of the groundbreaking One Santa Fe development, check out RENTV’s video news program about the area on our home page at www.rentv.com.
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