It wasn’t until a couple of years ago, after the region rebounded from the recession and Silicon Beach began to boom, that investors keen on improving Corporate Pointe began to show up.
New York Life purchased 400 and 600 Corporate Pointe for $131.3 million in 2015. Olive Hill purchased 200 and 300 Corporate Pointe in May for $65.6 million. Both are embarking on substantial renovations to build so-called creative spec suites.
“The owners now feel like they don’t want to get skipped over,” said Michael Cho, Olive Hill’s president. “They don’t want this progress and this change to skip over us into Beverly Hills, into Century City, or even down into El Segundo.”
His company is spending $50 to $70 a square foot to build creative spec suites.
New York Life is undertaking similar renovations, emphasizing exposed spiral ducts as well as glass doors and walls.
An important part of the strategy is to make creative space available for tenants who want an immediate move-in, according to Feld, the company’s leasing agent.
“A tenant walks in and goes, I can’t find this anywhere, I’ll pay a premium, I’m not going to fight you,” he said.
The activity might lead to another Corporate Pointe transaction. A source familiar with Vornado’s 800 Corporate Pointe said the property is on the market.
Vornado representatives did not return calls seeking comment, but the time might be right. Ares Management signed a 10-year, 97,000-square-foot lease at the 800 building last year at a monthly rent of $3.40 a square foot, according to Jones Lang LaSalle, one of the highest rents at Corporate Pointe.
Another big sign of change is IDS Real Estate Group’s C3 at Culver Pointe. The seven-story building with 278,247 square feet, set for completion around June, will feature tall ceilings, patios, loft space, and catwalks that connect upper levels of the building to a parking structure.
Monthly asking rents are $4.35 a square foot, said IDS Senior Vice President David Saeta, who is pushing the “Culver Pointe” rebranding.
“It sends a message that there’s a new game in town with a new product design,” he said.
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