Hines Agrees to Pay $218M for Tishman Speyer Asset in Los Angeles

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Campus at Playa Vista

A subsidiary of Houston-based Hines Global REIT, Inc. has gone under contract on the Campus at Playa Vista, a four-building office complex in Los Angeles, CA, for $218 million, exclusive of transaction costs and working capital reserves. The seller is with PV Campus Parcel 3, L.P.

The 324,955 square foot Campus at Playa Vista was constructed in 2009. It is 97 percent leased.

Closing on this transaction is expected to occur in May 2013. Hines has made a $25 million deposit on the purchase, but there are no guarantees that the acquisition will occur.

CBRE Group Inc. listed the property on behalf of Tishman Speyer Properties LP, according to a March 2013 article from Bloomberg.com, which reported that the New York-based owner developed the complex in 2009. That same article says that Facebook is one of the property’s tenants.

Belkin International, Inc., a private technology manufacturer and supplier, anchors the property under a 150,023 square foot lease that expires in November 2021. The University of Southern California also serves as an achor, leasing 103,167 square feet, or approximately 32 percent of the property through May 2020.

Internet Corporate for Assigned Names and Numbers, a not-for-profit entity responsible for the coordination of Internet Protocol addresses and the management of domain name spaces, leases approximately 36,080 square feet through June 2022.

Playa Vista is adjacent to the nine-acre Central Park to the south and has views of the Santa Monica Mountains and downtown Los Angeles. Playa Vista is bordered by Marina Del Rey to the north and Playa Del Rey and Westchester to the south, providing access to CA-90 and I-405. Los Angeles International Airport is approximately three miles to the south.

The campus is part of a multi-phase, mixed-use community including over 3,000 new residential units and more than 200,000 square feet of retail development, according to Tishman Speyer’s website.