Beachbody LLC has expanded at Santa Monica’s Lantana Entertainment Media Campus.
The fitness equipment maker known for its P90X workout added 36,500 square feet to its 3301 Exposition Blvd. headquarters. It signed a seven year lease valued at roughly $10 million for a total of 91,000 square feet.
“We’re growing. Over the last two years, we grew from 200 to over 570 employees,” said Jon Congdon, president of Beachbody. “We had nowhere to put our employees unless we got (more) space. We love the area and the campus environment.”
Founded in 1998, Beachbody manufactures and markets in-home fitness and weight-loss equipment and programs, including the popular P90X and Hip Hop Abs programs.
The expanded space, previously vacant, will put the company on two floors in the Lantana South building, allowing Beachbody to build an exercise room to test new programs. It also brings the 130,000-square-foot building to 100 percent occupancy.
Lionstone Group, a Houston real estate investment firm, acquired the 12-acre, 460,000-square-foot complex of four low-rise office and studio production buildings in 2009 from Maguire Properties. Constructed in 2007, Lantana South is the newest building on the campus.
Earlier this year, Adconion Media Group, a digital media holding company, relocated its U.S. headquarters to 40,000 square feet in Lantana South. Other tenants in the complex include IMAX Corp., Dick Clark Productions and Revolution Studios.
Industry Partners’ Jim Jacobsen and Scott Rigsby represented landlord Lionstone. Tony Morales and Tom Turley of Jones Lang LaSalle represented Beachbody.
A 48-unit apartment complex in Downey traded hands for $10.4 million in cash and debt last month.
An Emeryville diversified real estate investment group, Hfh Ltd., bought the Florentine, a 73,000-square-foot apartment complex at 9070 Florence Ave., for $143 per square foot.
The transaction was facilitated by Hfh assuming $7.8 million in mortgage debt from seller Revere Investments, a multifamily real estate investment firm in Rancho Palos Verdes.
The complex has two-bedroom, two-bathroom units and three-bedroom, two-bathroom townhomes. Units range from 1,410 square feet to 2,095 square feet, with average monthly rents starting at $1,750 and topping out at $2,095. The garden-style property includes a pool and spa, and is within a few miles of large retail center the Landing.
“Every deal that sells right now is significant because we are coming out of a time with low sales velocity. For Downey, this raises the bar significantly,” said Matthew Ziegler, Marcus & Millichap’s Encino office vice president of investments, who represented both sides of the deal. “I think we closed at over $215,000 a unit on a price per door, which is a very big number. The price per square foot is very low, but that’s because the units are so big.”
Hfh does not plan any renovations to the property, because Revere had already replaced the roof and remodeled all but five of the units with upgraded countertops and bathrooms.
Jeffrey Louks, a senior vice president of investments in Ziegler’s office, also represented both sides.
A.V. Squad has moved into the former Bug Music headquarters on Sunset Boulevard in Hollywood.
The company, which had signed a 10-year lease valued at roughly $4.2 million for 14,000 square feet at 7750 W. Sunset Blvd., moved in last month.
A.V. Squad produces trailers for major motion pictures such as “The King’s Speech” and “Iron Man.” It has grown from a two-person operation run out of a house to a 50-employee company.
“It was an off-market deal. I found the landlord and we happened to connect the dots for people. I saw the building and knew it was perfect,” said Gabe Kadosh, broker at May Realty Advisors in Sherman Oaks, who represented both sides.
A.V. Squad is spending more than $500,000 for renovations for interior and exterior improvements on the property.
Bug moved out this year for a larger space on 6100 Wilshire Blvd. near the Miracle Mile.
Staff reporter Jacquelyn Ryan can be reached at firstname.lastname@example.org or (323) 549-5225, ext. 228.
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