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Wednesday, Feb 28, 2024

Califia Farms Signs Arts District Lease

Plant-based beverage company Califia Farms is moving into a new home in the Arts District.  

The company has signed a 29,440-square-foot lease at the Maxwell building., which is owned by Brentwood-based Hudson Pacific Properties Inc.
The Maxwell is located at 1019 E. 4th Place, just minutes from Califia Farms’ previous location at 1321 Palmetto St.

The Maxwell, which has 63,224 square feet, was completely renovated in 2019. It has event space, roll-up garage doors, a rooftop terrace, outdoor seating and parking.
“We want to create an inviting and energizing space that fosters collaboration for our growing Califia Farms team. The amenities in this neighborhood and the features of the Maxwell building hit the mark for us,” Mike Castle, Califia Farms’ chief financial officer, said in a statement.

Newmark Group Inc.’s Craig Kish represented Califia Farms in the transaction.
“This is the ideal location for Califia Farms’ expansion as they continue to grow their business, brand and team,” Kish said in a statement. “State-of-the-art indoor/outdoor creative office properties like this are in short supply in the downtown Los Angeles market.”

Califia Farms will occupy two floors of the building.
WeWork Cos. Inc. had previously leased the entirety of the five-story building. The company will continue to occupy the other three floors.

The downtown office market has had some difficulties, as have many other office markets during the Covid-19 pandemic. During the second quarter, the vacancy rate in the area was 19.3% compared with 16.9% the previous year, according to data from Jones Lang LaSalle Inc.

Almost 192,000 negative square feet was absorbed into the market, and the asking rate for Class A office space was down year over year to $3.83 a square foot.
But Kish said the Arts District will likely recover faster than other markets.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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