Newmark has completed the $169 million sale of Jefferson Creative Campus, a fully leased 152,146-square-foot office asset located at 5870, 5880 and 5890 W. Jefferson Blvd. in Los Angeles. Situated on approximately seven acres within an Opportunity Zone in the Culver City submarket, the three-building campus includes excess development potential that would allow for more than 600,000 square feet of office buildings.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, and Senior Managing Director Laura Stumm represented the sellers, Rader Properties Group VII, LLC and Rodeo Properties, LLC. Ron Rader of Lee and Associates also represented the sellers and provided key local market intelligence. The buyers, Clarion Partners, LLC and Lincoln Property Company, were self-represented.
Jefferson Creative Campus’ major tenants include Spin Master, MedMen and Prana Studios. Over the last decade, the campus has been renovated to become a premier creative campus in the Hayden Tract and offers polished concrete flooring, electric car charging stations, drought tolerant landscaping, and outdoor meeting areas.
“Over the last 35 years, ownership, with a critical eye, has continually repositioned the property to meet current tenant demand,” said Rader. “Today, tenants have repeatedly demonstrated a willingness to pay a premium for the high-end, restored, creative office space that the Jefferson Creative Campus provides to attract and retain talent.”
“Culver City has emerged as the preferred location for creative/techtainment tenants including HBO, Apple, and Amazon given its supply of new construction, urban walkability, and centrality within Los Angeles,” said Shannon. “Surging original content budgets have resulted in a seemingly insatiable need for office space and most new construction has been delivered pre-leased,” added Stumm.
With Culver City tenants including Apple, Amazon, HBO and Sony, the submarket has become the global epicenter for original content creation. Class A asking rents in here have risen 70 percent over the last four years supported by a supply of newly developed office product.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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