Development Activity Is Picking Up Along Miracle Mile

Development Activity Is Picking Up Along Miracle Mile
Gnet is leasing 17

Creative agency and production company Gnet has signed a lease for nearly 17,000 square feet in Miracle Mile.

The company will relocate its headquarters to the Miracle Mile Tower from its current location on Sunset Boulevard in 2021.

Koreatown-based Jamison owns the tower, which is located at 5455 Wilshire Blvd. The 22-story property was built in 1960 and has 222,000 square feet.

“The move to the Miracle Mile provides us with access to an exciting part of the city, a very efficient use of space, all while remaining within our Covid-impacted budgets,” Gnet President John Rosenberg said in a statement.

Rosenberg said he had “determined that cost and available space would make renewing our current lease too difficult.”

Jamison will build out the top floor and part of another floor for the agency. The space will include private offices, meeting spaces and studios.

First Property Realty Corp.’s Ben Silver, Jeffrey Resnick and Greg Astor represented Jamison in the transaction. NAI Capital’s Mike Arnold represented Gnet.

“Jamison provided Gnet with custom expansion options tailored to their needs,” Silver said in a statement. “The favorable pricing offered by Jamison, compared to other buildings in the area and the planned renovations to the property, were strong factors in Gnet ultimately making the decision to move its operations to the Miracle Mile Tower.

“We believe other entertainment and tech companies will follow and lease space at the Miracle Mile Tower,” he added.

Arnold said Jamison gave Gnet “a very competitive lease package to move and expand their operations to Miracle Mile Tower.”

The average asking rate for Class A space in the Miracle Mile area during the third quarter was $4.26 a square foot, up 2 cents over the previous quarter, according to data from Jones Lang LaSalle Inc.

Development activity is strong in the Miracle Mile area.

The iconic Wilshire Courtyard office complex, which Onni Group of Cos. purchased last year for $630 million, has filed plans with the city to add high-rise buildings.
The reimagined complex will have 3.1 million square feet of space across 35- and 41-story towers. The property will also have street-level retail and expanded parking.
Most of the other developments in the area are either museums or multifamily housing.

The long-delayed Academy Museum of Motion Pictures is scheduled to open in 2021 with permanent and temporary exhibits featuring costumes, props and other Hollywood memorabilia, along with a dome-shaped theater.

The Los Angeles County Museum of Art is undergoing a $650 million remodel, and the La Brea Tar Pits and Page Museum — part of the Natural History Museum of Los Angeles County — will undergo its first major update since 1977.

On the multifamily front, developer Walter Marks is in the entitlement phase for a $400 million, 42-story tower at 5411 Wilshire Blvd.

Construction is underway on the Residences at Wilshire Curson, which will have 285 apartments and was developed by Jerry Snyder, who died earlier this year.
Woodland Hills-based CGI Strategies has proposed a seven-story building, with 121 condos and 125 hotel rooms in the area.

A 209-unit project with a paseo running between Tom Bergin’s is also planned.
Industry experts say the Metro extension coming to the area is one of the elements driving the expansion. Once completed, the extension will allow passengers to go from downtown to the Westside with a stop in Miracle Mile.

And despite its high per-square-foot asking rate, Miracle Mile office buildings still offer a discount compared to nearby areas like Hollywood and Beverly Hills, where asking rents are $5.46 a square foot and $6.05 a square foot, respectively.

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