Playa Jefferson campus.

Playa Jefferson campus. Photo by Courtesy Photo

Playa Jefferson, a nearly 200,000-square-foot office campus in Playa Vista, traded hands this month for $33 million.

Vantage Property Investors, a private real estate investment and redevelopment company in Manhattan Beach, bought the two-building campus at 12755-12777 W. Jefferson Blvd. from Embarcadero Capital Partners, a San Francisco office property investment and management company.

It’s one of three office campuses in Playa Vista, which has been increasingly attracting creative and tech tenants such as Palo Alto’s Facebook Inc., which has an office in the neighborhood.

At roughly $165 per square foot, the sale was among the lowest priced for a Class B space of its size and quality, according to Washington, D.C.-based CoStar Group Inc., which lists comparable Los Angeles County sales within the last year at $180 to $684 per square foot.

Built up in the 1970s and ’80s, and renovated this year, the campus features single two- and three-story buildings joined by a 50-foot glass atrium lobby. The campus was only 18 percent leased, with an average monthly rental rate of $1.75 per square foot.

It was formerly known as the Citicorp Campus because the bank was a past tenant.

Kevin Shannon, vice chairman at CB Richard Ellis Group Inc. who represented the buyer and seller, said that part of the appeal was the lower Westside’s promise.

“It’s a great value-add opportunity in the path of progress,” said Shannon. “They are making a bet on the future of Playa Vista market and the ability to find a tenant for that market. When you bet in L.A., West L.A. is the usually the first market that pays off.”

He added that the buyer plans to take a patient approach to filling the offices.

Shannon’s colleagues Scott Schumacher and Ken White also represented both sides of the deal.

Koreatown Win

After two years of discussion, it looks like a high-rise apartment and retail project on Wilshire Boulevard and Vermont Avenue in Koreatown will finally move forward after receiving key funding this month from the city of Los Angeles.

Developer Jerry Snyder received City Council approval for a $12.5 million loan from the Department of Housing and Urban Development and a $5 million loan from the Community Redevelopment Agency as part of a larger $173 million public-private financial package.

Snyder said the city’s financial backing was the final critical piece to moving forward on the project, known as the Vermont. “Of course, I see this as a win,” he said. “I feel great.”


For reprint and licensing requests for this article, CLICK HERE.