A pair of Playa Vista offices built during the bottom of the market in 2009 are slated to sell for $425.8 million, or $850 a square foot, according to a source working in the market. The buyer expected to pick up the silvery buildings on Bluff Creek Drive from JP Morgan Chase & Co. is Edward J. Minskoff Equities of New York. A representative at Minskoff declined to comment. JP Morgan, represented by Eastdil Secured, could not immediately be reached.
JP Morgan picked up the Bluff offices, called Horizon, for just under $300 million, or less than $600 a square foot, from Lincoln Property Co. in 2011, when Playa Vista values were rocky in the wake of the recession. While the new price tag marks an office record for Playa Vista, it’s possible that a looming expiration date on a lease for the majority of the property prevented the price from going higher.
Fox Interactive Media signed a lease in 2008 for 90 percent of the complex that runs through 2021, but was forced to pull back its presence after the financial crash. It now subleases all but one floor, said Cresa broker Dave Toomey, who brought in several subtenants on the Fox lease.
“From a landlord’s perspective, that’s not a good situation that 90 percent of your complex expires on one day,” he said. “If none of those tenants chose to renew, you’ve got a problem.”
The buildings are set to trade a hair higher than the recent deal for Playa Jefferson. The four-building office campus that is home to Facebook’s regional operations sold for $165 million, or $843 a square foot.
News of the transaction was first reported by the Real Deal.
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