More Warehouse Converted to Creative Office on its way for Culver City
The demand for creative office space in LA continues to rise and an additional 40k SF will certainly help the cause. Neighboring the successful Blackwelder creative campus, 5900 Blackwelder was sold for $8M to a development team with plans on converting the warehouse into creative office space. As creative companies have moved to Santa Monica's peripheral markets - like Culver City- running from high rents and lack of availabilities, the supply of creative office space in these markets has become scarce as well. Expect this space to have a company moving in the day it is completed.
A Culver City office warehouse has been sold for $8 million to a development team that plans to renovate it into a creative office campus.
A joint venture of Santa Monica’s Industry Ltd. and L.A.’s Saber Realty Advisors acquired the 30,000-square-foot industrial building at 5900 Blackwelder St. from Burke Williams Spa.
The 2.2-acre site is next to the 6.4-acre, 150,000-square-foot Blackwelder creative office campus, a former cabinet and furniture manufacturing facility that was renovated into creative office space for entertainment firms. Blackwelder, which was converted in 2008, is 90 percent occupied by media firms such as the Mill, Hungryman, On Board Entertainment and Bandito Films.
Industry Ltd. is an affiliated development company of office brokerage Industry Partners Inc., which was part of the leasing and design team that transformed the Blackwelder campus for owner Genton Property Group LLC.
Industry Ltd. is planning to build off the success of the Blackwelder project with a $3 million capital improvement program to convert the Burke Williams industrial building into creative office space, which would include building an additional 10,000 square feet of mezzanine space.
Tom Majich, director of development and construction at Industry, said the project should be attractive to growing creative firms.
“For tenants looking in Santa Monica, it’s hard to find a 30,000- or 40,000-square-foot building,” he said.
Indeed, creative companies have been looking to areas such as Culver City that offer ample amounts of space for rates lower than nearby Santa Monica. In fact, rates for creative space in Culver City were around $2.58 a square foot compared with Santa Monica’s $4.01 at the end of 2012, according to Industry Partners.
Industry, which hopes to finish its renovations by the end of the year, is seeking tenants for the project.
*Shared by Jeff Vertun, Scott Steuber & Ted Simpson