REAL ESTATE: Lower Miracle Mile Rent Trumps Beverly Hills Cachet

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REAL ESTATE: Lower Miracle Mile Rent Trumps Beverly Hills Cachet

Danny King

Maybe it’s a sign of the economic times, but Wilshire Boulevard’s Museum Row is starting to attract tenants from Beverly Hills.

In the latest example of what is still just a mini-trend, Greines, Martin, Stein & Richland will move its practice from Beverly Hills to the Miracle Mile, the result of a six year, $4 million deal for 20,400 square feet at the Wilshire Courtyard complex at 5700 Wilshire Blvd.

The law firm will be taking a portion of the space previously occupied by Creative Planet, which still has 13,000 square feet in the building, and Spelling Films. Creative Planet at one point once took 104,000 square feet in the building.

The firm had been subleasing space from fellow law firm Rosenfeld Meyer and Susman and was looking for long-term stability at a lower price.

“We wanted to put ourselves in position to lock in a long term lease,” said Managing Partner Martin Stein, who added that the larger space and newer amenities also were draws. “It’s a gorgeous building.”

As for losing the Beverly Hills cachet, Stein said that status associated with that city was not an issue. “We’re a boutique firm, and I don’t see location having a major effect on business,” said Stein. “We could be almost anywhere for what we do.”

CB Richard Ellis first vice president Blake Mirkin noted that last year’s additions of E! Entertainment and Initiative Media Worldwide to Wilshire Courtyard have boosted the status of Miracle Mile in its own right.

Tim O’Rourke, managing director at Julian J. Studley Inc. who represented Greines Martin, estimated that the $2.72 per foot is 25 to 50 cents less than the Greines Martin would have paid to renew its lease at its present 9601 Wilshire Blvd. offices.

Miracle Mile office vacancy rates fell to 13.7 percent from 14 percent during the third quarter while average rent fell two cents, to $2.47 per square foot.

Toliver Morris of McCarthy Cook & Co. represented Wilshire Courtyard in the deal.

High End Marina

Dallas-based developer Lincoln Property Co. has been given the go-ahead to build a 450 unit, $70 million residential high rise in Marina del Rey.

Officials at the company’s Newport Beach office did not return calls seeking comment about the project, which will go up at 13700 Marina Pointe Drive, just west of the intersection of Lincoln Boulevard and Maxella Avenue.

Lincoln Property has developed 140,000 multi-family units in 99 residential developments in the U.S., predominantly on the East Coast and in the Southeast. The Marina development will be the company’s first in L.A. County and third in the state, having most recently built a 251-unit complex in La Jolla.

South Bay broker Leo Nordine echoes the sentiments of many local residents over Lincoln Boulevard’s worsening traffic conditions, though he says that the demand for housing in the area will support the project.

“I don’t think it’ll be hard to sell,” said Nordine.

Industrial Dealing

Metro International Trade Services Inc. returned to familiar surroundings by leasing a 169,000 square foot building at Watson Center South in Carson. The four-year deal is valued at $3.8 million.

The Detroit-based warehousing, distribution and logistics company, whose local headquarters are in Wilmington, had occupied the spot for five years before moving out in July due to a slowdown in business and a resulting consolidation of stock.

Scott Neal, director of marketing at Metro International, said the space is particularly attractive to the company because of its demarcation as a Foreign Trade Zone, which reduces import and export duties and excise taxes for the company’s clients.

“They’ve been in that center as a subtenant but this is their first master lease,” said Watson Land Co. director of leasing Lance Ryan. “They wanted a location near the port, they are a Foreign Trade Zone Operator and they’d already operated out of that building.” Ryan represented Watson Land, the building’s owner, in the transaction.

The building had only one previous tenant, Artesia Door, since its construction in 1970. The industrial park encompasses 6.7 million total square feet.

The Metro International, which currently operates 20 warehousing sites nationwide, was represented internally on the deal.

Adding Space

Looking down the road at a potential development site, the City of Downey has signed an interim license agreement with NASA for a 160-acre site at 12214 Lakewood Blvd.

The property, former home to a Boeing Co. operation, has been the site of several film locations, and the deal with NASA allows the city to maintain the 10 film shoots it had scheduled there between now and next spring.

It is the first formal step in Downey’s efforts to purchase the site. The purchase will be worth about $20 million and is expected to be completed in March 2002.

Once under city control, the site will be developed as a retail, medical and business center. Downey has already struck tentative deals for 400,000 square feet of retail space at the site. A Kaiser Hospital will also be built, as well as a grade school and a park. Downey Landing LLC will be the developer.

City of Downey community development director Darrell George estimates that total redevelopment costs in the $500 million to $600 million range. “The interim agreement is really our first step in the redevelopment of the site,” he said.

The deal with NASA requires no rent, but the city is obligated to pick up the $30,000 monthly utilities, maintenance and security.

Restaurant Resurrection

As expected, Santa Monica City Council voted 5-2 last Tuesday to enact a temporary moratorium on the conversion of restaurant space to retail space on the Third Street Promenade. The 45-day moratorium took effect immediately.

The action essentially buys time for the city to set up a task force, which will include members of city council, the planning commission and the Bayside District, to work out ways to stem the tide of restaurant departures as rents have climbed.

Staff reporter Danny King can be reached at (323) 549-5225 ext. 230, or by email at

[email protected].

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