A 75,875 square-foot office building that is home to several entertainment companies has recently been placed on the market in Los Angeles’ Toluca Lake neighborhood. According to the listing by Newmark, which declined to share guidance pricing, the multi-tenant property is just over half occupied, leaving opportunities for an investor to fill a portion of the building or lease it at market rate.
Built in 1984, the three-story office building is located at 4130 Cahuenga Boulevard. The property is currently owned by Long Beach-based investment company Harbor Associates, which purchased the property in February of 2021 for an undisclosed amount.
Since then, Harbor Associates has renovated the building to include an updated lobby and indoor and outdoor common areas. In total, the property has undergone $3.2 million worth of renovations.
At 57 percent occupied, the building is home to several tenants in the entertainment industry. A. Smith Productions, which has produced more than 200 television series for over 50 networks, occupies about 40 percent of the property. Other tenants at the property include National Traffic Consultants, Hammer Creative and GCX.
“With a weighted average lease term of 3.68 years, the property gives investors the opportunity to lease up the remaining vacancy, while also having a strong remaining term for the current tenants,” the listing states.
Toluca Lake also neighbors several of Los Angeles’ media and entertainment hotspots, including Universal City and the Burbank Media District. The location provides close proximity to nearby studios, such as the Universal Studios campus and the Warner Bros. Studio. The property is also near the Los Angeles River and easily accessible by Interstate 101.
Overall, entertainment industries are leading the Los Angeles office market recovery. According to a fourth quarter office market report from Newmark, Los Angeles’ office market is still seeing a higher than average vacancy rate of 19.4 percent. However, many entertainment and media companies continue to occupy space. For instance, Riot Games signed a 199,882 square-foot lease at Hines’ West Edge Development, while also subleasing 132,000 square feet at Lantana Media Campus in Santa Monica. HBO also added 161,000 square feet of space at The Lot in West Hollywood.