LOS ANGELES—AEG has signed a lease withLincoln Property Co. for the DesmondBuilding, an 82,000-square-foot officebuilding in the South Park neighborhood of Downtown LosAngeles. The location will serve as the headquarters of AEG'sticketing and live entertainment divisions, AXSTicketing.

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Lincoln Property Co. purchased the property in March 2013. Builtin 1916, the property most recently severed as the warehouse ofDesmond's department store. Lincoln Property plansto renovate the warehouse into a creative officespace with a ground floor cafe. The renovation includes theaddition of a 7,000-square-foot sixth floor that brings the squarefootage up to 82,000 square feet, and a seismic retrofit andupgrades that will both maintain the historic appearance of thebuilding and make it safer for earthquakes. Construction will takeplace soon, and will be completed in April 2015 when AEG will takeoccupancy.

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"AEG is one of the world's leading concert touring andpromotions companies, and for years has been a major catalyst forthe revitalization of Downtown L.A.," David Binswanger, LincolnProperty EVP, tells GlobeSt.com "Our transformation of The Desmondinto high-quality, creative office space will allow AEG to runtheir dynamic live music and ticketing businesses in a modern,collaborative work environment. We can't wait to see what theydo."

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AEG will house 500 employees in the building, who will relocatefrom AEG Live. Skidmore, Owings & Merrill is designing theinterior space for AEG. "By consolidating over 500 regional jobsfrom their AEG Live and AXS Ticketing divisions at the Desmond, AEGis further investing in the growth and vitality of Downtown LosAngeles," says Binswanger. "Lincoln Property's transformation ofthis long-vacant historic property, coupled with the anticipateddowntown streetcar, positions The Desmond at the center of therebirth of Downtown L.A."

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Office developers are starting to find more and moreopportunities in the downtown market. ASB Real EstateInvestments and Blatteis & Schnurrecently purchased a block of five warehouses for $32.5 millionwith plans to invest another $30 million to transform theproperties into a creative office campus. Similarly, AtlasLA 4th Street LLC purchased the former Coca-Colabuilding in the arts district for $19 million toreposition the warehouse into creative office.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.