Office/flex complex on block in LA

Real Estate Alert, May 5, 2004

An Angelo Gordon partnership is marketing an office/flex property in suburban Los Angeles that caters to entertainment tenants.

The two-building campus, at 10950 West Washington Boulevard in Culver City, is valued at about $25 million. Cushman & Wakefield has the listing.

Fox Television and NFL Network lease 70% of the building, but the rest of the space is vacant following the departure of Sony Cinema Products and another Sony affiliate, Centropolis Effects.

The building might be attractive to an entertainment company interested in occupying the vacant space. The Angelo Gordon team is also marketing the property to value-added investors.

At a $25 million price tag, the buyer's initial annual yield would be less than 7%, but the stabilized yield would be about 10%. Asking rents are $27/sf.

Defense contractor Avnet owned and occupied the property until 1997, using it as industrial and office space. The group led by Angelo Gordon, which operates opportunity and core-plus funds, then converted the industrial building into office and soundstage space, and overhauled the existing office building to make it more attractive to entertainment tenants.

The property, near the 405 Freeway, includes indoor and surface parking for 450 cars.