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10/06/16
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We’ve learned that The Ratkovich Company has listed for sale their Hercules West Campus, the future centerpiece of Google’s Southern California campus. The property, situated in the heart of Playa Vista, consists of four buildings that are 100 percent leased to Google over a 16-year term with three percent annual rent escalations.
Hercules West Campus is being marketed as an extremely unique opportunity to acquire the “crown jewel” of the historic buildings that formerly comprised the Hughes Corporation’s headquarters. The main structure is one of the largest wooden laminate buildings in the United States.
PHOTOS: www.TheFotoFinisher.com |
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Conceived during a prolific period of discovery and innovation under Howard Hughes, the historic buildings include the soaring, voluminous hangars in which Howard Hughes built the Hercules H-4, also known as the “Spruce Goose.” Inside these buildings Google plans to build new state-of-the-art structures containing a total of 524.7k sf in three stories and a mezzanine floor. The asset and its investment grade “bond-like” cash flow present a rare opportunity to acquire an iconic, one-of-a-kind property, leased long-term at significantly below market rate to one of the most desirable companies in the world.
The Google Hangar at Hercules West Campus will be an integral part of Google’s Southern California Campus.
Through its YouTube subsidiary, Google already leases the entire Hercules South Campus and a portion of Hercules East Campus. Google purchased approximately 12 acres of land directly north of the hangar buildings for $120 mil in December 2014. Collectively, Google owns or leases approximately 32 acres of land with entitlements to potentially build to more than 1.5 msf.
Other major area employers that make up Playa Vista’s office market include include YouTube (Google), Electronic Arts, Sony Playstation, Facebook, Microsoft, TMZ, Belkin, IMAX, California Pizza Kitchen, Yahoo, Verizon and the USC Institute for Creative Technology. Playa Vista also boasts world-renowned advertising agencies such as 72andSunny, TBWA/Chiat/Day, OmniCom/OMD, Team One and Deutsch.
The campus is being marketed by HFF’s Director John Crump and Senior Managing Director Michael Leggett. An asking price was not given out.
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