The Playa Vista area is gaining another high-profile creative tenant. Toms Shoes Inc., a five-year-old trendy canvas footwear company known for donating pairs of shoes to the needy, is moving its headquarters there.
The 10-year deal secures 70,850-square-feet of office space at 5404 Jandy Place at a cost of about $1.25 per square foot a month. Toms is leaving its smaller offices of less than 20,000 square feet in Santa Monica on 3025 Olympic Blvd., where the company has been for two years.
A key selling point for the two-story building was its price. Asking rents in Santa Monica average nearly $4 a square foot.
“Their decision was based on multiple things: mainly economics. Second to that was parking. Lastly, it was a very modest but creative environment that Toms was searching for,” said Trevor Belden, principal at Lee & Associates-LA North/Ventura Inc., which represented Toms.
The rapidly growing shoe company donates one pair of shoes to a child in a low-income country for every pair sold. The expansion follows an announcement by the company that it will be growing its product line in June.
Landlord Karney Management Co. was represented by John Bertram, executive vice president at Coldwell Banker Commercial WestMac. Colleague Tim Macker, senior vice president, also worked on the deal.
Lee broker Mike Tingus joined Belden in representing Toms.
Fledging real estate investment trust Hudson Pacific Properties Inc. issued 6.75 million new shares last week as it works to repay debts and fund new acquisitions.
The secondary offering, expected to raise about $100 million, is expected to close May 3. The shares were priced at $14.62, a premium above the stock’s recent trading range. Shares closed at $14.19 on April 28.
Since going public in a $210 million IPO last June, Hudson Pacific has been aggressively buying up media and entertainment buildings statewide. It is led by Chief Executive Victor Coleman, who co-founded Arden Realty Inc., which was sold to the real estate division of Fairfield, Conn.-based General Electric Co. for $4.8 billion in 2006.
Hudson Pacific’s portfolio comprises 12 properties totaling about 3.4 million square feet. Its most valuable asset is Rincon Center, a popular San Francisco mixed-used complex featuring shops, restaurants, apartments and offices. Hudson Pacific acquired 51 percent of the complex, and may use some of the secondary offering’s proceeds to acquire the rest from its joint venture partner, according to a Securities and Exchange Commission filing.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Mani Bros. Buy In Playa
- Hudson Pacific Snaps Up Playa Vista Building
- Hudson Pacific Properties, Macerich to Redevelop Westside Pavilion
- Playa Vista Deal Shores Up Investor’s Portfolio
- Stomp Out the Toms Shoes Model
- VICTOR COLEMAN
- Riot Games to Move Headquarters
- Santa Monica, West Hollywood Surrender Space but Rents on Rise