Chinese e-commerce giant Alibaba Group is coming to Los Angeles.
The firm, one of the most valuable tech companies in the world, signed a lease for the top floor of the newly constructed Playhouse Plaza in Pasadena. It will take 22,000 square feet at the five-story, 155,002-square-foot Class A office building on the southeast corner of Colorado Boulevard and El Molino Avenue.
Lease terms are not known, but asking rents for Class A office space in the Tri-Cities are about $30 a square foot a year, according to data provider CoStar Group Inc., valuing Alibaba’s lease at $660,000 annually.
The $75 million Playhouse, at 680 E. Colorado, was developed by downtown Los Angeles firm IDS Real Estate Group and was designed to appeal to financial and tech companies, said Todd Doney of downtown L.A.’s CBRE Group Inc., who represented IDS in the lease transaction. The building was completed in April.
Other tenants at the property include San Francisco co-working company Epic Spaces, which leased 9,500 square feet, and San Francisco investment firm Charles Schwab, which leased 9,300 square feet.
Doney and Steve Nelson of CBRE represented IDS along with IDS’ internal brokers Dave Saeta and Rob Fuelling.
Alibaba raised $25 billion in its initial public offering on the New York Stock Exchange last year and has a market cap of more than $200 billion.