Macrovision Solutions Corp. has given back about half its space at the former Hollywood headquarters of TV Guide, the iconic magazine that has fallen on hard times and was recently sold for just $1.
By terminating its lease at 6922 Hollywood Blvd. with landlord CIM Group Inc., Macrovision paved the way for entertainment marketing firm Trailer Park to sign a 60,000-square-foot lease.
Trailer Park already has two lower floors at the 12-story property and now will occupy TV Guide’s old space on the top two floors. The 10-year lease makes Trailer Park the anchor tenant of the 154,000-square-foot building, where the company is headquartered.
Terms of the Oct. 16 transaction were not disclosed but the total consideration was said to be market rate at $27.5 million.
“They’ve always enjoyed the building. They like the location and they have always wanted to find a facility that would allow them to consolidate their operations,” said Mark Sullivan of Studley Inc., who represented Trailer Park.
Macrovision, a digital content services company, purchased Gemstar-TV Guide for $3.2 billion in May largely for Gemstar’s on-screen cable TV listings. But it had little desire to hold on to the faltering magazine, and in October sold the magazine for just $1 to OpenGate Capital. The give-back of the Hollywood space will allow Macrovision to consolidate offices. The TV Guide name will come off the building.
Eric Duncanson of Cushman & Wakefield Inc., who represented TV Guide in the lease termination negotiations, said that TV Guide will completely vacate the building next year.
Trailer Park will leave offices at 1741 Ivar Ave. and begin moving into its new space this quarter, with the relocation completed by the end of first quarter 2009. The new lease will start Jan. 15.
Andrew Lustgarten and Michael Shuken of Studley also represented the tenant. The landlord was represented in-house by Jeff Kreschek.
Office Sale
Another building has been sold at the Edge, a new 15-building project located inside the 47-acre Campus El Segundo business park.
Theriac Enterprises of El Segundo paid about $4.5 million for a 12,682-square-foot building at the property, developed by San Francisco-based AMB Property Corp. and Torrance-based Mar Ventures Inc.
The 200,000-square-foot development, between Nash and Douglas streets at Atwood Way, caters to midsize businesses like Theriac, with the largest building just 20,000 square feet. The development opened in April.
Theriac, an oncology group, will take about a year to convert the building into a radiation treatment center. Gary Weiss of Madison Partners, who represented the buyer, said that the sale price was “a little less than what their asking was, but it is very consistent to what the other deals were done at.”
The sale breaks down to about $355 per square foot. While the office market has been hit hard in 2008, medical office space has done better as doctors groups continue to be busy, Weiss said.
With the transaction, there are just three buildings left for sale at the property.
Bill Bloodgood and Bob Healey of CB Richard Ellis Group Inc. represented the owners in the August sale. Dustin Ballard of Madison also represented the buyer.
Plugged In
Alchemy Communications Inc., a Chatsworth-based data hosting company, has signed a 10-year renewal at downtown L.A.’s Garland Center for 27,000 square feet of space.
The deal for the space in the first subterranean level at the 1200 W. Seventh St. office building is with Charter Holdings Inc., a subsidiary of Wells Fargo & Co. Charter has a master lease with the building owner, private investment partnership Trumbull & Associates LLP.
Terms of the Oct. 3 renewal were not disclosed, but it was said to be market rate. Asking rents for data center space in the building are $8 to $10 per square foot per month on a modified gross basis.
The property has 230,282 square feet of data center space on two subterranean levels. Charter is spending $35 million on upgrades, including new power and cooling systems for servers. The work should be complete by Jan. 1. Alchemy’s renewal is effective March 1.
Jason Warner of CB Richard Ellis represented the landlord. The tenant was represented by Gerald Eggleston of Grubb & Ellis Co.
Staff reporter Daniel Miller can be reached at [email protected] or (323) 549-5225, ext. 263.
