The Eastside Hotspot for Creative Office

The high concentration of creative professions is putting the Silverlake market on the map for creative office redevelopment. In its second Los Angeles acquisition, ArcWest Partners has purchased a 30,000-square-foot historic property in the market to redevelop into a creative office asset. The investor sees tremendous potential for creative office in the market, which is known for housing creative professionals and artistic amenities. The investor has tapped Bestor Architects to design the property, which it imagines will be the crown jewel of the market. To find out more about what makes Silverlake and attractive office investment market and the firm's plans for the property, we sat down with Neville Rhone, managing partner of ArcWest Partners, for an exclusive interview.

GlobeSt.com: Why are you attracted to Silverlake as an office investment market?
Neville Rhone: An incredibly high concentration of creative and entrepreneurial professionals live in Silver Lake yet there are very few options for office in the neighborhood.  We also like Silver Lake due to its unique experiential retail offerings that have been dramatically improving over the last decade.
GlobeSt.com: You recently purchased an office building in this market with plans to renovate it. Do you find many opportunities in the market, or was this rare?
Rhone: This is definitely a rare opportunity that we are excited about.  The building was built in 1928, so it has a wonderful history and unique feel, and there are few other office alternatives in the neighborhood.

GlobeSt.com: Has this market become more popular for office users? What is tenant demand like here, and from what types of users?
Rhone: Tenant demand is incredibly strong with both retail and office vacancies below 5% in the neighborhood.  Whether drawing from media, technology and design, office tenants however tend to be smaller, younger and more entrepreneurial.   With up to 10,000-square-foot floor plates that can be demised, we believe that we are hitting the heart of the demand of the creative class.

GlobeSt.com: Creative office is clearly the most dominant office trend. How are the design trends similar or different in Silverlake, which is known as a cool, alternative neighborhood?
Rhone: This property offers many design elements sought after by those seeking creative office such as architectural significance, natural wood flooring, exposed brick and high ceilings.  However, these elements are offered in a dramatic 1928 building is unlike anything else in the neighborhood.

GlobeSt.com: How does Silverlake's office market compare to popular adjacent office markets that have experienced recent growth, like Hollywood and Downtown Los Angeles?
Rhone: By and large, Silver Lake has much less supply as compared to larger markets in Hollywood and DTLA. The demand though, is very strong.   This is reflected in the incredibly low vacancy rates, some of the lowest in Southern California.  As previously mentioned, office and retail tenants in Silver Lake tend to be smaller, more entrepreneurial and seek out curated experiences.

GlobeSt.com: What is your business plan for your recent acquisition?
Rhone: We intend to refurbish the exterior, create a better sense of arrival and uncover architectural details to attract tenants seeking architecturally distinctive office and retail in a historically significant 1928 building.