OLYMPIC BLVD ‚Äî An Atlanta-based real estate investment and management company has bought the Lantana office complex in Santa Monica, the company announced Thursday.
It was reportedly sold for more than $310 million, the L.A. Times reported.
Lantana, located on West Olympic and Exposition boulevards, is the first acquisition in Southern California for Jamestown, which bought four buildings, totaling 484,840 square feet of office space.
The buildings include high profile tenants including IMAX; Todd-AO, which provides creative post production sound services to producers of film and television; BeachBody LLC., makers of the intense workout regime P90X; and Dick Clark Productions.
Eastdil Secured, a real estate investment banking company, along with Jim Jacobsen and Scott Rigsby of Industry Partners represented Lantana‚Äôs seller, Lionstone Group, in the transaction.
Some of the plans for improvements at Lantana include enhancing and revamping production facilities, adding new amenities that may include offering continuing education classes, more dining options, showers for bike riders and dog runs, a spokesperson for Jamestown said Thursday in an e-mail.
The company said Lantana presents exceptional in-place cash flow, and its quality, location, and flexibility have achieved impressive occupancy and above average rental rates.
Some companies have reportedly paid as much as $6 per square foot for prime office space in Downtown, a result of Santa Monica‚Äôs desirable location, investment in infrastructure and its collection of restaurants and other amenities. In recent times, its reputation as being a home to tech and other media startups has made it an attractive draw, earning it the title “Silicon Beach.”
“The innovation economy is driving demand for work spaces that offer a vibrant mix of amenities, metropolitan ambiance and collaborative, flexible environments,” said Michael Phillips, chief operating officer of Jamestown, in a press release. “Jamestown is helping to lead the charge in creating next-level spaces in just these types of environments, and our work at Lantana will further this commitment.”
The campus is in close proximity to the Bergamot Station Arts Center, which is near the forthcoming Exposition Light Rail Line that‚Äôs expected to be in operation in 2016.
Jacobsen, founder of Industry Partners, said Jamestown is a firm believer the Expo Line will be beneficial and a game changer in the area.
“I think they‚Äôre going to keep furthering the campus to lend itself to being become part of Bergamot Transit Village,” Jacobsen said.
Discussions are ongoing between City Hall and Hines, a Texas-based developer, to create a mixed-use, transit-oriented development near Lantana that will include housing, retail and creative office space.
Jacobsen said Santa Monica was a draw for the company because of the entertainment and technology companies in town. He said with a tenant mix of IMAX and Todd-AO, Santa Monica is becoming a hybrid of technology and entertainment.
” [Jamestown has] an interesting take on the whole intersection of art and commerce and entertainment and so what made it really interesting to them is [Lantana] blends all of those things,” Jacobsen said.
Jacobsen said Amazon.com, Inc., Intel, Twitter, Netflix, Inc. and AMC Networks are also looking in Santa Monica for office space as tenants.
Barbara Tenzer, president of Tenzer Commercial Brockerage Group, Inc., said Santa Monica is a unique location for investment.
“I know that Lantana, the way it was divided up, it had a very good income and it’s a very interesting concept,” Tenzer said. “It‚Äôs hard to find those kinds of properties to lease on the Westside. That makes it very valuable.”
Jamestown also owns other properties in San Francisco and New York City like Chelsea Market and the mixed-use 799 Market Street, which has jobs listing website Monster.com as a tenant. The real estate investment and management company is actively looking into other investments on the West Coast, according to the company.