Netflix Goes Hollywood with Major Lease Deal
Academy on Vine is located on a 3.5 acre, full-city block that was acquired from The Academy of Motion Pictures Arts and Sciences in 2013. The project will include three office buildings and a 20-story residential tower.
HOLLYWOOD, CA—Netflix has signed a long-term lease for approximately 355,000 square feet of office space at Kilroy Realty Corp.’s Academy on Vine project here currently under construction.
The Academy on Vine mixed-use project is comprised of an office component, currently under construction, and a 193-unit residential building, which Kilroy plans to start construction on later this year. The lease is expected to commence in phases upon completion of construction of the office component starting in mid-2020.
“We are excited to have forged a partnership with Netflix which has leased all of the office buildings at Academy on Vine, a site rich with history and a legacy of advancing the arts and sciences of motion pictures. On behalf of the team, we are thrilled to welcome Netflix to the Kilroy community,” says Delmar Nehrenberg, KRC’s SVP, Los Angeles.
“Our expansion into the Academy on Vine property further deepens our connection with the Los Angeles and Hollywood communities,” says David Wells, chief financial officer of Netflix. “We’re excited to continue to grow our team right in the heart of Hollywood.”
In October 2018, Netflix signed a lease deal with Hudson Pacific Properties Inc. to fully occupy the entire “EPIC” office building on Sunset Boulevard in Hollywood.
The Internet entertainment service will begin taking occupancy in phases in January 2020 of the entire 13-story, 327,913-square-foot office building currently under construction. The lease deal concludes in January 2031.
Academy on Vine is located on a 3.5 acre, full-city block that was acquired from The Academy of Motion Pictures Arts and Sciences in 2013. The project will include three office buildings and a 20-story residential tower. The buildings will feature large, flexible floor plates and Academy on Vine is expected to receive LEED Gold certification. It will also encompass large public gathering areas that will feature public art, the company states.
Kilroy Realty entered the Hollywood market in 2012 with its initial acquisition of 6255 Sunset, which was extensively remodeled and renamed Sunset Media Center. The company has further grown its footprint, through the development of two mixed-use projects, Columbia Square and Academy on Vine. Together with its Los Angeles properties, KRC has assembled a media portfolio consisting of Westside Media Center, Tribeca West, Santa Monica Media Center, and DirecTV’s global headquarters totaling approximately 3.5 million square feet.
As of Sept. 30, 2018, Kilroy’s stabilized portfolio totaled approximately 13.9 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. In addition, KRC had three projects under construction totaling approximately 1.0 million square feet of office space, 608 residential units and 120,000 square feet of retail space as well as two projects in the tenant improvement phase totaling approximately 1.2 million square feet of office and PDR space. The office components of the two projects are fully leased to Adobe and Dropbox.