Los Angeles – Oct. 10, 2016 – CBRE Group, Inc. announced the 275,000 square-foot lease at the Ford Motor Factory in the Arts District in Downtown Los Angeles to Warner Music Group.
Warner Music will take the entire building at 777 South Santa Fe Avenue starting in August of next year. CBRE’s John Zanetos, Todd Doney, Rob Waller, Chris Penrose and Phil Ruhl negotiated the nearly 13 year lease on behalf of the landlord, New York-based developer Shorenstein Properties. The agreement includes an option to renew for an additional 10 years.
Shorenstein renovated the former industrial site into a modern, Class A creative office structure. Warner Music is now adding its own tenant improvements to fully build out the space to meet their requirement.
"We’ve worked hard to design and deliver a great building worthy of a great tenant and reflective of the creative energy throughout the Arts District,” said Jim Pierre, SVP, Shorenstein Properties. “We’re delighted to have a great company such as have Warner Music as our tenant at the Ford Factory.”
Warner, which will relocate from Burbank, will be the Arts District’s first large-scale office tenant. The new location will serve as the company’s West Coast headquarters. Downtown Los Angeles has seen a flurry of new projects and redevelopment of existing buildings across all neighborhoods, including the historic core, the financial district and South Park. Since 1999, Downtown has received more than $7.3 billion in residential, $1.2 billion in arts & entertainment, and $2.6 billion in civic and institutional investments.
"We are excited to have Warner Music Group call the Ford Factory their home,” said Zanetos, who noted that the specifics of the lease, such as price per square foot, are still being finalized.
“This is a significant moment for a building with a long history. The property started as a factory for Model T cars and will now be home to one of the premier music and entertainment labels. This will significantly change the landscape for The Arts District and Downtown Los Angeles.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
