Landlords Could Gain From Westfield’s Century City Plans

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Westfield of America Inc.’s plans to raze two Century City office buildings adjacent to its mall to make way for condos and more shops and restaurants could reshape the office submarket.


The Sydney, Australia-based company’s plans would reduce the amount of vacant Century City office space by nearly one-third, possibly pushing vacancy rates into the single digits for the first time in seven or more years.


“I’m sure every landlord in Century City is elated,” said Gary Weiss, a principal with brokerage Madison Partners. “Westfield just took 300,000 square feet of competition off the market.”


In the last five years, Westfield has been betting heavily on Century City. The company bought the 780,000-square-foot mall five years ago and has nearly completed a $150 million overhaul of the property.


Since buying the mall, Westfield paid $20 million for a 56,000-square-foot building and surrounding land at 1930 Century Park West, where investment bank Houlihan Lokey Howard & Zukin is based. Westfield plans to raze the structure to make way for a five-story parking garage.


Two years ago, the company paid about $82.5 million for the 240,000-square-foot Gateway West office building at 1801 Avenue of the Stars, a 40-year-old property that was one of the first towers built in Century City.


Westfield plans to dismantle the building, and in its place build three stories of shops and a 42-story tower that would contain 260 condos and about 100,000 square feet of office space.


Ken Wong, president of Westfield Group’s U.S. operations, said the announcement last week was only the beginning of a public process that could take more than a year to complete. Before filing its plans with the city, Westfield had been conferring with surrounding neighborhood groups for several months, he said.


“We think Los Angeles has a very bright future and Century City is coming into its own as a live-work district,” Wong said. “We are part of a very happy rejuvenation of Century City as a total district.”


With condos reaping higher profits than building new office space, developers are planning several large-scale residential projects in Century City, where office skyscrapers have long dominated the landscape.


JMB Realty Corp. is planning twin towers with 483 condos on land the company owns at 10131-10155 Constellation Blvd. And Related Cos. purchased the St. Regis hotel and plans to raze the high-rise to make way for a 39-story tower containing 145 condominiums.


Still, Westfield’s plans are the first that would take office space off the market, and that could benefit Trammell Crow Co., which is building a 790,000-square-foot office tower at 2000 Avenue of the Stars. The structure is expected to be completed in October, and already the building is around 40 percent leased. Calls to Trammell Crow executives weren’t returned.


“I’m sure the Trammell Crow guys are happy about Westfield’s plans,” Weiss said. “Like every Century City landlord, they stand to gain.”



Good Luck


Luckman Plaza, one of the largest office buildings in West Hollywood, has been listed for sale and could fetch close to $150 million.


The building at 9200 Sunset Blvd. was developed by noted architect Charles Luckman, who along with fellow architect Bill Pereira, were master planners of Los Angeles International Airport. Luckman was also the designer of many of L.A.’s iconic structures such as the Great Western Forum.


He built his 300,000-square-foot West Hollywood structure at the western edge of the Sunset Strip to house his firm’s offices. Luckman also included a 10,000-square-foot penthouse apartment with a rooftop swimming pool for him and his wife.


The property consists of two buildings. The 13-story Luckman Plaza fronts Sunset Boulevard, with a three-story building tucked behind it separated by a courtyard with water fountains.


Luckman Plaza has a good reputation among office brokers, who said the family had maintained the property to a high standard. Rental rates at the office building are well above the West Hollywood/Hollywood average of $2.54 a foot.


“It’s been maintained better than typical buildings of that age,” said Paul Stockwell, a senior managing director with Studley. “The views are magnificent. It’s always been attractive to the entertainment industry and it’s always been pretty full.”


Several entertainment firms are located in the building, including Abrams Artist & Associates. Disgraced private investigator to the stars Anthony J. Pellicano also once had offices in the building.


Since its opening in 1971, the building has been held by the Luckman family. After interviewing several brokerages around town, the family has listed the property with Eastdil Secured’s Stephen Somer. Somer declined to comment, but other brokers believe the property will fetch around $150 million, or close to $500 a foot.



*Staff reporter Andy Fixmer can be reached by phone at (323) 549-5225, ext. 263, or by e-mail at

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