A historic Hollywood property has signed its first tenant since undergoing renovations that began last summer.
Australian-based audio engineering school SAE Institute signed a long-term lease for about 41,000 square feet at Hollywood Office Campus, a 105,500-square-foot creative office property at 6700 Santa Monica Blvd. and 1017 N. Las Palmas Ave.
The two-building office park in the Hollywood Media District was once home to Eastman Kodak Co.’s West Coast headquarters. Landlords Lincoln Property Co. and GEM Realty Capital Inc. purchased the property last year for $24.7 million.
The institute, which leases about 20,000 square feet at 6565 Sunset Blvd., is expected to move to the new site by the end of the year. It will occupy all 19,500 square feet in a free-standing two-story building at the front of the campus as well as about 21,000 square feet of an 86,000-square-foot production warehouse. The smaller building features a 44-seat screening room, an interior courtyard and a full-service kitchen. The warehouse features several screening and editing rooms, film vaults and fitness facilities.
“This is one of the largest leases in Hollywood in the last several years,” said Nicole Mihalka, a broker for Chicago’s Jones Lang LaSalle Inc. who represented the landlord. “We’re starting to see more activity and demand for larger square footage.”
Mihalka declined to disclose terms of the deal, but said she’s marketing the remaining space at the property for $2.75 a square foot a month. A 10-year lease for 41,000 square feet at that rate would be valued at about $13.5 million.
Carl Muhlstein and Hayley Blockley of Jones Lang LaSalle also represented the landlord. Brokerage firm Cresa represented the tenant.
Beverly Hills real estate crowdfunding company Realty Mogul announced last week that it raised $9 million in a Series A funding round led by Westport, Conn., venture capital firm Canaan Partners.
The year-old company also announced earlier this month that it had reached an investment milestone, having funded 58 properties in 14 states totaling more than $100 million in value through its online platform.
Jilliene Helman, chief executive and co-founder of Realty Mogul, said Canaan’s support will help the company realize its primary goal: to democratize access to commercial real estate deals.
“Canaan’s backing will help us to enable thousands of investors to have an easy, transparent way to diversify their portfolio into commercial real estate by crowdfunding opportunities previously only available to a select few,” she said in a statement.
Through its online platform, Realty Mogul allows accredited investors an opportunity to invest as little as $5,000 in commercial real estate deals. Individual accredited investors must have an annual income of at least $200,000 or a net worth of at least $1 million. The company makes money by charging an annual fee of 1 percent to 2 percent of total money raised by its investors.
Hrach Simonian, a principal at Canaan, has joined the Realty Mogul board.
“Realty Mogul will be the next disruption in a massive asset class,” he said in a statement.
Downtown L.A. real estate company CBRE Group Inc. was recently named one of the most ethical companies in the world.
In a report released earlier this month, Ethisphere Institute, a New York research center promoting best practices in corporate ethics and governance, listed CBRE among 144 companies that not only talk about having ethical business practices and standards but prove it with action. Three other real estate companies joined CBRE on the list: Jones Lang LaSalle; Realogy Holdings Corp. of Madison, N.J.; and Unibail-Rodamco SE of Paris.
Ethisphere rated companies on the strength of five key elements: existing ethics and compliance programs, reputation for leadership and innovation, governance systems, corporate citizenship and responsibility, and an overall culture of ethics.
Bob Sulentic, CBRE’s chief executive, said the company’s place on the 2014 list is a testament to its commitment to responsible behavior.
“The award not only acknowledges our robust ethics and compliance program, but also highlights the dedication of our employees to serve the communities where they live and work, our company’s commitment to giving to those in need, our thoughtful approach to sustainability and our culture of integrity,” he said in a statement.
Other L.A.-area companies that made Ethisphere’s list include: Aecom Technology Corp., CH2M Hill, Parsons Corp., Aerospace Corp., Mattel Inc., H.B. Fuller and Northern Trust Corp.
Staff reporter Bethany Firnhaber can be reached at email@example.com or (323) 549-5225, ext. 235.
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