Universal Music Group, the largest music company in the world, has committed to keep its global headquarters in Santa Monica.
Just weeks after completing consolidation of its San Fernando Valley operations in a single, massive lease, the international company renewed for 201,000 square feet at 2220 Colorado Ave. for 10 more years. Financial terms of last month’s lease were not disclosed, but according to real estate data provider CoStar Group Inc., monthly lease rates for comparable office space nearby are about $4.15 a square foot. At that rate, UMG’s lease would be valued at more than $100 million.
UMG will continue to lease the full six-story building, which was built to suit the company in 1999 by Westwood developer Spieker Properties. The new lease will begin May 1.
In June, UMG signed a long-term lease for 146,000 square feet at LNR Warner Center in Woodland Hills.
Boyd Muir, UMG’s executive vice president and chief financial officer, said the company was happy to stay put in Santa Monica as the area has become a vibrant center for technology and other creative companies.
“We have seen the area develop into a hub for the entertainment industry’s most important and cutting-edge companies,” he said.
Paul Stockwell, Josh Leibowitz and Jeremy Charles of CBRE Group Inc. represented the tenant in the Santa Monica deal, while Brad Feld and Chris Keller of Madison Partners represented landlord Clarion Partners.
Stockwell, who led CBRE’s tenant advisory team, said the company considered other options but ultimately concluded the Santa Monica building was the best fit.
“They are going to be doing some renovations to make it a little bit more contemporary, but it’s an ideal location for them,” he said.
Related California, a division of New York real estate behemoth Related Cos., is beginning to make good on its promise to enliven what has long been a dead stretch of Ocean Avenue in Santa Monica.
The developer has completed construction of Ocean Avenue South, a $350 million condominium and apartment complex south of where the 10 freeway meets Pacific Coast Highway, with sales and leasing efforts of the residential units and retail space well under way.
The full complement of 160 apartment units has been leased, and about 35 percent of 158 condominiums have been sold for an average of $2.75 million, or about $1,600 a square foot.
Now, activity on the commercial side is picking up. Three food and beverage companies have signed long-term leases to occupy an aggregate of 15,000 square feet of retail space at the ground level of the two condominium buildings. San Francisco chef Brian Malarkey will open a third iteration of his signature restaurant, Searsucker, in about 7,400 square feet. Popular L.A. eatery Jones on Third will also open its third location in about 5,000 square feet. And Starbucks Co. will open an evening concept that will serve beer, wine and small plates in addition to coffee in about 2,500 square feet.
Gino Canori, senior vice president of development for Related, said that he expects two more restaurant tenants will sign leases to fill the remaining 5,000 square feet in the next several weeks.
“We’re very close. We’re trying to make sure we pick the right tenants who will be with us for a while,” he said.
He declined to disclose financial terms of the restaurant leases, but said remaining retail space is being marketed for between $78 and $92 a square foot a year. An average of $85 a square foot a year (about $7 a square foot a month) would value all three signed restaurant leases together at more than $12.6 million.
Upward and Onward
Century City real estate investment and development firm Laurus Corp. has named Douglas S. Kiel chief financial officer. Kiel joined Laurus from Makar Properties, a private real estate firm in Newport Beach, where he spent 14 years in a similar role as chief operating and financial officer. … Real estate services firm NAI Capital has named Charles Carmichael chief information officer and an executive vice president. Carmichael was promoted from director of the Encino firm’s IT department. In his new role, he will oversee the newly launched NAI Capital Information Services Group.
Staff reporter Bethany Firnhaber can be reached at firstname.lastname@example.org or (323) 549-5225, ext. 235.
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