Playa Vista's Spark Sells For $300M
The creative campus known as The Reserve, formerly the old US Postal Service facility, was the key spark that lit up Playa Vista. The project was converted into impressive creative space where tenants could re-imagine their image and create a more desirable culture, attracting big name tenants like Sony Playstation, TMZ, Microsoft, and Edgecast. The Reserve got relatively high rents at the time (which have climbed since) and long term leases, completely filling up quickly. And after purchasing it for $44M just 4 years ago, they just sold it for $300M - not a bad return!
Bisnow 2/4/14 https://www.bisnow.com/archives/newsletter/commercial-real-estate/los-angeles/4018-invesco-pays-300m-for-playa-property/
The institutional money has arrived in Playa Vista, as Shorenstein Properties and Jeff Worthe have sold The Reserve to Invesco for $300M.
This was just about simply timing the market. Shorenstein and Worthe picked up the old US Postal Service facility just four years ago for $44M making the deal quite the return on investment. The sellers put quite a bit of TLC into the property, repositioning it as one of the top tech offices in the city. Snazzy amenities include a sand volleyball court, fitness center and a car wash. Top tenants include Microsoft, TMZ and Sony Playstation.
Invesco is paying top of the market for the pace car of Playa Vista. The Reserve was the project that really lit the fuse for the market, and Playa could not have more momentum going for it right now.
The deal is just the latest in a windfall for the red hot market, attracting tenants like Yahoo, which is jumping ship from SaMo for 130k SF at Tishman Speyer's Collective, and Google, which shook the Earth with its $120M land buy next to Ratkovich Co's Hercules Campus. And just last month, Clarion Partners unveiled plans for its i/o at Playa Vista Campus (which stands for "interaction/optimized"), a six-story, 301k SF complex.
*Shared by Jeff Vertun