Playa Vista has sold 64 acres of land in its eastern section to two real estate investment companies that are planning to construct an office building complex on the site. The commercially-zoned land, located in “The Campus” portion of the Playa Vista community, is adjacent to the intersection of Jefferson Boulevard and Centinela Avenue — an area that includes the hangar where Howard Hughes’ “Spruce Goose” plane was built during and after World War II.
Playa Vista announced the sale Monday, February 12th, to the joint venture of Tishman Speyer Properties and Walton Street Capital LLC.
New York-based Tishman Speyer owns properties in major cities throughout the world, including Rockefeller Center and Chrysler Center in New York, and Chicago-based Walton Street Capital has invested or is committed to invest in approximately 150 separate transactions in U.S. and international real estate.
Some reports have estimated the sale price of the land at about $200 million.
Through this transaction, the last remaining area of commercially zoned land at Playa Vista will be developed into an “amenity-rich campus” consisting of new low-rise office buildings that will complement the historic buildings on the site, Playa Vista officials said.
The site is entitled for nearly two million square feet of overall space and it surrounds a planned nine-acre recreation park that is to include playing fields.
“This transaction is a key part of the vision of Playa Vista,” said Playa Vista president Steve Soboroff. “Already we’ve created some fantastic residential, community and park spaces, and we anticipate the development of the Village phase to begin next year.
“Now, with the entrance of two internationally-renowned companies, Tishman Speyer and Walton Street, the entire commercial component in the Campus is becoming a reality.”
Soboroff said the sale of the land for commercial development helps achieve Playa Vista’s vision that people can live and work in the same community.
More than 4,500 people currently live in the Playa Vista community.
“The master plan always called for a live-work environment at Playa and this fulfills that,” Soboroff said.
John Miller, Tishman Speyer senior managing director for the West Coast, agreed that the construction of the new office building complex will add to the concept of a live-work environment at Playa Vista.
“This is a fantastic opportunity to create a much-needed, high-quality office environment in a unique work, live and play community — one that we hope will serve as a model for future development,” Miller said. “We are pleased and proud to play an integral part in this historic development, combining both ground-up construction and preservation of historical structures in a one-of-a-kind location.”
The developers said the low-rise office buildings that will be constructed are intended to complement the historic buildings on the site, which were part of the Hughes Aircraft Company.
As part of the project, the existing buildings will be preserved and upgraded, with some of them potentially redeveloped as state-of-the-art sound stage facilities.
Plans for the complex also include features consistent with the rest of the Playa Vista community, such as restaurant and retail space and a daycare facility, according to the developers.
“We have some of the best commercial builders and creative people in the world doing some of their best work right here, so it’s real exciting,” Soboroff said.