Knotel to Open First LA Location in Santa Monica
Flexible work space provider Knotel has established its first location in Los Angeles, a move that marks its entry into the Southern California office market, the company announced today.
The new space will be located at 429 Santa Monica Boulevard, a recently renovated, seven-story, 87,000 square-foot Class-A office building that is adjacent to the famous Third Street Promenade and within walking distance of the beach. Further details of the lease agreement were not immediately available.
Knotel will sublease 12,338 square feet on a portion of the building’s third and fourth floors, space that features views of the Pacific Ocean, exposed ceilings, a modern kitchenette, conference rooms and open, collaborative areas. The Douglas Emmett-owned building has close access to public transit through Monica Expo Line and the I-10 and 405 freeways.
Amol Sarva, the founder of Knotel, said in a statement that the firm expects to add “several more locations here in the coming months and plan[s] to expand in more cities during the year.”
Ray Howden from Cresa represented Knotel in the transaction. Robert Cavaiola and Shay Bolton of Savills Studley represented the sublandlord, Inventure Capital Corporation. The Real Deal reported on the lease earlier today.
Douglas Emmett purchased the property from Blackstone in 2017 for just under $74 million as part of a larger deal.
Founded in 2016, Knotel has been rapidly expanding its portfolio this year, particularly in New York City where the flexible office provider just inked a deal last week for 39,000 square feet in United Group’s 29 West 35th Street, as Commercial Observer reported. Knotel, according to Cushman & Wakefield, is the second-largest coworking company in New York City behind WeWork. (Disclosure: Observer Capital, led by Observer Media Chairman and Publisher Joseph Meyer, is a Knotel investor.)
Knotel, which currently has more than 2.5 million square feet in its portfolio across 110 domestic and international locations, takes office space under leases or management agreements and sublets them to companies using flexible terms.