HOLLYWOOD, CA—Brentwood Capital Partners has sold the historic Citizen News Building to SE Edinger LLC for $14.5 million. The 48,925-square-foot office building currently has 94% occupancy with a tenant mix of mostly entertainment industries.
The buyer purchased the property to capitalize off of the increasing demand for creative office space in Hollywood. “Hollywood has a history that simply cannot be replicated anywhere else in Southern California and we are seeing evidence of a younger and reenergized workforce that wants to live, work and play here,” says Trevor Belden, a broker at Industry Partner‘s Hollywood office, who represented both the buyer and the seller in the transaction, along with Luke Palmo, Brian Peterson and Alex Sachs of Coldwell Banker Commercial WESTMAC. To supply this demand, the previous owners renovated the property in 2006, adding 16-foot ceiling heights and concrete floors, skylights and second-floor patios. The new design attracts entertainment tenants, including Larson Studios and Partizan Entertainment, which currently lease space in the building.
Examples of investors looking to supply the much-needed demand for creative office are abundant. Last week, GlobeSt.com reported that SAE Institute signed a record-breaking new lease for a 41,000-square-foot office space at the newly built Hollywood Media Campus. According to JLL‘s Nicole Mihalka, SAE Institute’s former Hollywood space was half the size, and the company moved to accommodate growth.
Although newly renovated, the Citizen News Building, however, isn’t a new space. The office building has some pretty deep historic roots in the Hollywood market. It was constructed in 1930 and designed by architect Francis D. Rutherford. It was the home to Hollywood’s first newspaper, and building’s namesake, until 1968 when the paper closed operations.