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CENTURY CITY, CA-Three tenants have signed deals for 45,700 sf of office space at 2049 Century Park East, one of the twin 44-story triangular skyscrapers of Century Plaza Towers that total more than 2.2 million sf, according to Newmark Pacific. The tenants are Radio & Records DNA Studio and United International Mortgage and Investments Inc.Terms of the deals were not disclosed, but Michael Arnold of the Los Angeles office of Newmark Pacific says that all three subleases were signed at rates substantially below the asking rates for direct space at the Century Plaza Towers. At the property, asking rates range from $3 to $3.45 per sf per month.Radio & Records signed for 18,964 sf for five years with sublandlord HBO in a move from approximately 24,000 sf in Santa Monica. The company is based in Los Angeles, with offices in Nashville and the Washington, DC area. Radio & Records Inc. was represented by Arnold, Steve Kolsky, Rick Merritt and Ben Stapleton of Newmark’s Los Angeles office, along with Bill Benton of the firm’s San Francisco office.DNA Studio, a digital media and marketing specialist, signed its deal for 16,607 sf for five years, also with sublandlord HBO, in a relocation from approximately 24,000 sf in Beverly Hills. The terms of the transaction will allow DNA Studio to move into the new space gradually to avoid the burden of paying rent in both places at the same time, explains Arnold, who represented DNA along with Kolsky.United International Mortgage, one of the largest privately held African American Banks in the country, signed a five-year, 11-month deal for 10,129 sf in a deal with sublandlord Platinum Equities. The bank is moving from about 10,000 sf in Brentwood in a relocation to expand its operations and cut costs, according to Arnold, who represented the bank along with Kolsky. United, which was founded in 1981, has grown into an FHA and VA direct lender nationwide with offices in three states and the District of Columbia.HBO was represented by Matt Miller, Gerry Porter and Kathy Porter of Cresa Partners; Platinum Equities was represented by Willa McNamara from Beitler Commercial.Arnold says that the subleases were unusual in that, with rental rates starting to increase, institutional property owners are less inclined to aggressively negotiate deals with all but very large tenants. However, “tenants with sublease space are more inclined to be creative regardless of the size of the potential lease,” Arnold says. Although the three deals at 2049 Century Park East were all different, all three tenants were seeking “space in a high profile building and an opportunity to reduce operating costs,” Arnold says. He says the Century City building fit the bill because it provides the prestige address as well as long term subleases at rates substantially below asking rates for direct space. The 2049 building, which was completed in 1975, is nearly 90% occupied.

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