Audio equipment company Beats Electronics, which sells high-end headphones branded by rapper and music producer Dr. Dre, will move its headquarters from Santa Monica to Culver City next year.
The music electronics company has signed a 12-year lease for 109,000 square feet in the Hayden Tract, an old industrial district south of National Boulevard along Ballona Creek that has in recent years seen many of its warehouses converted into creative office space.
Beats, which occupies about 42,000 square feet at the plush Water Garden building in Santa Monica, will occupy a two-building minicampus under construction on 4.5 acres at 8550 Higuera St. and 8600 Hayden Place.
Landlord Hackman Capital Partners, a West L.A. real estate firm, broke ground on the adaptive reuse project last year and expects to complete construction and tenant improvements by April 1, when the Beats lease is to begin.
Micheal Geller, executive vice president at First Property Realty Corp. in Beverly Hills, represented Hackman in the transaction. He declined to disclose the value of the lease deal but said monthly rates for similar properties in the area average about $3.25 a square foot. That puts the value of Beats’ lease at more than $51 million.
Geller said Beats, which had been scouting locations for about a year, originally signed a lease in January for 66,400 square feet in three buildings in the Hayden Tract but backed out at the last minute.
“They were unable to occupy that facility because they had grown out of it by the time they needed to start construction,” he said. “Lucky for them we had a complex around the corner that was fitting of their image.”
Last month, Beats accepted a $500 million investment by asset management firm Carlyle Group in Washington for a minority stake in the business.
After quietly marketing a 49 percent stake in one of its L.A. office buildings all year, Boston real estate investment firm Beacon Capital Partners found a buyer.
New York real estate investment firm Madison International Realty announced last week that it had purchased a minority stake in One California Plaza, a 42-story office tower at 300 S. Grand Ave., for $295 million. That price values the 1.03 million-square-foot building at more than $600 million, or about $582 a square foot. The sale closed Sept. 26.
Beacon, which owns three Class A office towers in downtown Los Angeles, including the Aon Center at 707 Wilshire Blvd. and the Wilshire Grand at 600 Wilshire, originally acquired the trophy tower on Bunker Hill for just under $208 million about 18 months ago with joint-venture partner MPG Office Trust Inc.
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