New York Life Scoops Up North Hollywood Property for $103M
By Alison Stateman June 14, 2019 4:41 pm
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New York Life Real Estate Investors shelled out $103 million for a North Hollywood office property that counts WeWork among its tenants in a deal that closed last week, according to industry sources.
The four-story 205,285-square-foot property located at 5161 Lankershim Boulevard in the Los Angeles Media District was purchased from Beacon Capital Partners, which turned a hefty profit on the deal. Beacon had acquired the holding for $69 million, just two years ago.
“The property’s North Hollywood location was highly attractive to core capital from around the world and reflects investors’ preference for stabilized, urban assets with live, work and play characteristics,” Todd Tydlaska, an executive vice president at CBRE, said in a release. Tydlaska, Sean Sullivan, Mike Longo, Val Achtemeier and Greg Grant represented both sides in the transaction.
The property, which features open-air balconies, open floor plates, a fitness center, entertainment lounge and outdoor recreation area, was extensively renovated between 2016 and 2018 and is 100 percent leased to a combination of media and entertainment industry clients, including Bento Box Entertainment, Aspect Ratio and Endemol Shine Group.
“We are pleased to have had the opportunity to purchase this creative office property leased to quality tenants,” Cassie Mehlum, transaction officer at New York Life Real Estate Investors’ San Francisco office, said in the statement. “The walkable neighborhood amenities, including public transportation and housing, as well as essential indoor and outdoor amenities at the property, attracted us to this opportunity.”
The Los Angeles County Metropolitan Transit Authority, in partnership with Trammell Crow, is moving forward with plans for District Noho, a $1.2 billion mixed-use development on the 15.6-acre site surrounding the local metro station.
Investor desire for properties in the Greater Hollywood area has been strong, driven in part by the continuous demand for space from tech and media tenants across West Los Angeles and Hollywood. The market’s positive net absorption marked gains in 28 of the past 33 quarters for an aggregate of 15 million square feet, according to CBRE (CBRE).
