Onni Scores Big Value-Add in South Bay

MANHATTAN BEACH, CA—The Onni Group has purchased Manhattan Beach Towers, a 309,705-square-foot office building in Manhattan Beach for $95 million. The investor plans spend additional capital to fully renovate the property so that it can compete in the very active South Bay market, which has seen a boost in the last few years from creative and tech companies.

“Manhattan Beach is a very dynamic market with a diverse tenant base from professional services such as legal and financial companies as well as creative tenants from start-ups to media and technology,” Jason Fine, VP at JLL, tells GlobeSt.com. “It has always been one of the top cities to live in L.A. and as a result, it draws a lot of high profile companies to the area.” Fine is handling the leasing efforts for the soon-to-be renovated building, along with managing director Steve Solomon, and associate Kristen Bowman. The Onni Group did not respond to a request for a comment.

The investor's plans for the property include adding in an amenity floor inspired by the Manhattan Beach lifestyle. The package will include an Onni wifi lounge and gym with changing rooms and shower facilities. Additionally, the investor will add in-office suites with open ceilings, polished concrete floors and open collaboration spaces. The renovated building will have 1,500 to 128,000-square-foot floor plans. There is no information available about the timeline for the renovation or the amount of capital Onni plans to invest.

As a result of the renovations, however, Fine expects a healthy lease up. “We have received a great amount of interest thus far,” says Fine. “Fortunately, we have great ownership that is already making improvements to the towers that will exceed tenant's expectations and compliment the Manhattan Beach lifestyle. Based on the current activity and feedback that we've received thus far, we anticipate a fairly quick lease up of the towers in 2016.”

The Canadian-based developer also built the $200 million LEVEL DTLA, a 300-unit luxury multifamily development. The 33-story property offers fully furnished short-term and long-term stay apartment homes.