Maguire Recapitalizes LA Office Campus with $105M Loan
- Mar 25, 2013
Maguire Investments has recapitalized Water’s Edge, its two-building, 6.5-acre “creative office campus” in Los Angeles’ Playa Vista submarket, with a $105 million loan, the company announced Thursday.
The funds reportedly will be used for tenant improvements and for commissions for new leases on available space. The financing was arranged on Maguire’s behalf by Rob Verrone of Iron Hound Management, New York.
In related news, Jones Lang LaSalle has been retained to handle leasing at Water’s Edge. The JLL leasing team will be led by Chris Strickfaden, Anthony Gatti, Brian Niehaus and Jaclyn Ward.
Phase I of Water’s Edge has available blocks ranging from 8,000 to 71,000 square feet within its total 260,000 square feet. The 58,000-square-foot, green glass–sheathed Water’s Edge I and the four-story, 185,000-square-foot Water’s Edge II were developed in 2002 by a JV of Maguire Partners and Equity Office Partners
at a total cost of $77 million. Gensler was the architect and Matt Construction the general contractor.
The complex is also entitled for a 180,000-square-foot Phase II building.
Current tenants include Electronic Arts, developer of such video games as Madden NFL, The Sims and Mass Effect; Luxury Link, an online travel service; LA Fitness, at 31,000 square feet; and the X Prize Foundation. The latter is best known for its first prize, the Ansari X Prize for Suborbital Spaceflight, which was won in late 2004 by the Burt Rutan–designed SpaceShipOne.
In January 2012, the Los Angeles Times reported that Electronic Arts had renewed its 125,000-square-foot lease at the complex in a deal worth an estimated $35 million.
The “creative” in Maguire’s description of the property describes both the typical tenants and the type of space, a company spokesperson told Commercial Property Executive. Creative office space is characterized by taller ceiling heights, a more open floor plan, exposed ceilings, concrete floors and lots of amenities, with the goal of creating a more collegial environment. It’s “basically cooler space appealing to the Silicon Beach demographic,” the spokesperson said.
The complex adjoins the 350-acre Ballona Preserve, one of the L.A. region’s last sizable natural wetlands. Onsite amenities include a café, soccer field and LA Fitness (with full court basketball and sand volleyball). An outdoor swimming pool will open this summer.