LOS ANGELES—Griffin Capital Essential Asset REIT has purchased the DreamWorks Animation Headquarters and Studio for $215 million from SunTrust Equity Funding, an affiliate of SunTrust Banks. The property has five buildings and a total of 416,000 square feet, and is leased to DreamWorks Animation SKG on a triple net lease for 20 years with 1.5% annual base rental increases.

The site has a remarkable history. SunTrust Equity purchased the property five months ago from DreamWorks Animation for $185 million. DreamWorks was selling the property to increase its liquidity. According to sources unrelated to the deal, DreamWorks will receive 50% of the proceeds, $15 million, from the transaction, per an agreement with SunTrust in the original transaction to share profits on a future sale of the property.

“With lifestyle or creative office complexes recently at a high value across Los Angeles, we feel like our cost basis is pretty compelling for such an iconic piece of real estate,” Michael Escalante, chief investment officer at Griffin Capital, tells GlobeSt.com. “Further, when you enter the grounds, you get the feeling you are entering a campus that was designed as a hybrid between that of an esteemed university and a Four Seasons Resort.”

The rare office asset was built in 1997 for DreamWorks, and was expanded in 2010. Sitting on 14.7 acres, it is a self-contained creative office campus with a variety of amenities, including an employee cafeteria, fitness center and a Starbucks. It also houses unique equipment for the making of animated films, including editing equipment, digital animation equipment, screening rooms and recording studios.

CBRE represented the seller in the transaction.  

The property has been a major driver of multifamily development in Glendale, along with the nearby Disney campus, because it is a major employment hub. Recent developments in the area include the Camden Glendale a 303-unit apartment building. The property is meant to attract millennials working at DreamWorks and Disney.