CoStar News | January 11, 2018
NEW BUILDING FOR SALE AT HIGHEST PRICE EVER IN PLAYA DEL REY
Owner of 10,000-SF Compound Asking [$13.5] Million
Playa del Rey’s newest office building, a 10,000-square-foot creative office compound with floor-to-ceiling windows and balconies with views of the wetlands, is about to be put for sale at a price never seen in this tiny, supply-constrained office submarket.
Known as the Strand Offices, the three-year-old property at 311-315 Culver Blvd., will go on the market this week with an asking price of $13.5 million, or $1,350 a square foot, according to owner and developer Cove Springs Partners LP in Los Angeles.
At that price, it would be the highest price on a total dollar and a per square foot basis ever in the quiet beachside city, according to CoStar data.
The current top sale in this city occurred in 2012 when Foxhat LLC bought 420 Culver from Motor Car Dealer Services, Inc. for $3.3 million, or $339 per square foot.
Taylor Weston, as senior associate at CBRE Group, Inc. who specializes in the Westside markets but is not involved with this property, said the building is likely to garner significant interest.
“It is a unique opportunity,” Weston said. “There haven’t been any other like properties to hit the market recently. It could be exciting for someone to own a jewel-box property on the beach.”
The property, nestled in a popular corridor of the small Oceanside city, opened in 2014 and is fully leased to tenants including Portland-based craft beer company Craft Brew Alliance and New York technology company Corra Technology.
Owner Cove Springs is a partnership between Kim Macy, Owner of marketing and public relations firm Macy + Associates, Inc. and an unnamed investor. The partnership is seeking to use the proceeds from the sale for new developments.
Macy broke ground on the $6 million development in 2012 after demolishing a condemned preschool on the property. The project underwent a complicated building approval process and required nearly 100 foundational steel piles that drilled down through the low-laying water table of the area’s wetlands into the bedrock below.
Designed by MiKA Design Group in Studio City, the Strand Offices comprise two 5,000-square-foot, three-story buildings and include bike and car parking we well as electric car charging stations. The properties feature natural wood accents, hand-chipped Bulgarian limestone walls and planked wood floors.
Each building consists of two 2,500-square-foot, open-concept offices with ceilings as high as 11.5 feet. The properties have private decks accessible through sliding doors that provide views of Ballona Creek wetlands and the marina.
“It is a true creative environment here, with the Strand Offices being only three blocks from the beach,” said Macy, who has operated her PR business in a nearby playa del Rey office for the last 17 years. “While [the neighborhood] retains its casual beach lifestyle, it also has a lot of new restaurants, gastropubs and bars, while being only a few minutes from LAX.”
Playa del Rey, situated between the ocean and Highway 1 just south of Marina del Rey, is a small office market. Unlike its neighbor Playa Vista, which has become a goliath in the Westside office market, Playa del Rey has less than 15 office properties. All but a few are less than 10,000 square feet, and all are nearly fully leased.
Given the market’s size, it’s not surprising that there have been no comparable sales in the Playa del Rey market. But Macy believes they are asking a competitive rate comparable to the larger beachside Westside submarket. For example, a 3,300-square-foot new office built in 2013 at 1308 Pacific Ave. in Venice trade for $1,076 a square foot, or $3.55 million, earlier this summer.
Brad Feld, vice chairman at Newmark Knight Frank, said he thinks this building will sell very quickly.
“This is a cool little boutique-y building,” he said. “It is right in the path of progress and hundreds – possible thousands – of cars, which include high net-worth individuals from the high-end South Bay residential areas, drive past it all every day.”
RENTV.com | 01.21.15
Playa del Rey Office Project Opens 50% Leased
The Strand Offices, a recently completed 10k sf office project in the West Los Angeles community of Playa del Rey, has opened at 50% leased. The development, consisting of two, 5k sf buildings, was developed by Cove Spring Partners and is the first new office project built in the area in over 20 years.
Located at 311 and 315 Culver Blvd, three blocks from the beach, the three-story, creative office development features Marina water views and expansive, unobstructed views of the Ballona Wetlands. One of the two 5,000 square-foot buildings within the compound opens fully leased to Craft Brew Alliance.
Sustainable building practices and materials have been utilized throughout The Strand’s construction, including elements such as formaldehyde-free and dye-free insulation, to LEED certified steel foundation piles. The project’s coastal location, views and multiple outside decks, the four electric vehicle charging stations, lockable paddleboard, surfboard and bike racks, the LED lighting throughout and the gated parking are expected to resonate with companies in the tech and creative industries.
“We wish we had more space, as the demand for a larger footprint has been tremendous. But what we have now is an opportunity for a company to obtain the high-profile identity that is associated with being officed in a high-design, 5k sf building in a beachside location in which Class A space has not been previously available,” noted Kim Macy of Cove Spring Partners. “The Strand Offices offers a signature branding opportunity for a company that requires a contemporary work environment with all of the technological bells and whistles, plus an environment that’s conducive to creative thought and outdoor activities.”
Ceilings in the buildings are 10’8” on the second floor and 11’6” on the third, both featuring exposed oval ductwork. The lobbies feature hand scraped, eco-friendly hardwood floors and Bulgarian Limestone walls. The decks on both the second and third floors feature Fleetwood-style glass doors creating a true indoor/outdoor work environment.
Operable windows throughout the project are dual-glazed with a solar reduction film to enhance energy efficiency. The Strand complex features a louvered entry gateway constructed of responsibly forested Mahogany slated wood; the same wood providing a dramatic accent underneath the slanted roof and on architecturally key exterior walls.
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Bisnow | 01.20.15
The Strand Offices, a three-story, 10k SF creative office development, opened in Playa del Rey (311 and 315 Culver Blvd). One of the project's two 5k SF buildings is fully leased to Craft Brew Alliance. According to developer Kim Macy of Cove Spring Partners, this is the first new commercial office building completed in Playa del Rey in more than 20 years. The project is three blocks from the beach and boasts lockable paddleboard, surfboard and bike racks, as well as views of the marina and Ballona Wetlands. Kim says sustainable building practices and materials were used throughout The Strand's construction, including LEED certified steel foundation piles.
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Building Los Angeles | 07.07.14
Playa Del Rey's Strand Offices Looking Good
Silicon Beach's creative office boom has officially hit Playa Del Rey. When we last checked in on the Strand Offices in September 2013, the low-rise development's wood skeleton was still taking form. Ten months later, the twin three-story structures are clad in plaster and wood paneling, closely resembling architectural renderings from the MiKA Design Group.
The $6 million development from Cove Spring Partners consists of 10,000 square feet of office space and parking accommodations for 32 vehicles. Located at 311 and 315 Culver Boulevard, the buildings are situated less than a ten-minute walk from the beach, along a corridor rich with retail and restaurant establishments.
Although Playa Del Rey has thus far retained its mid-century identity as a quaint, beachfront community, the Strand Offices may be a harbinger of the neighborhood's future. The colossal Playa Vista campus looms one mile east, comprising more than 1,000 acres of residential, office and retail uses. Two blocks west of the Strand, the controversial Legado Del Mar development is planned for a triangular-shaped property bounded by Culver Boulevard, Pacific Avenue and Vista Del Mar.
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Cove Spring Partners Begins Construction On ‘The Strand Offices At Playa Del Rey’ – City’s First New Office Development In 20 Years
Construction Begins in February, 2012 on Modern Office Compound Three Blocks from Playa del Rey Beach; Property Views Include Ballona Wetlands Preserve and Marina Water
Playa del Rey, CA (February 6, 2012) – Cove Spring Partners LP, a private developer of high quality coastal real estate, has finalized all necessary permitting and is moving forward with Playa del Rey’s first new construction of a commercial office property in 20 years - The Strand Offices at Playa del Rey (The Strand). The modern creative office compound, slated for Winter 2014 completion, will feature two private buildings, each of three stories. The Strand will be located at 311 and 315 Culver Blvd just three blocks from the Beach in Playa del Rey, adjacent to the Ballona Creek Wetlands Preserve and offering Marina water views.
“For any professional living in the South Bay Beach cities from Manhattan Beach to Palos Verdes, fighting traffic each day to reach their offices in Venice and Santa Monica, The Strand Offices at Playa del Rey will offer a unique alternative with comparable beachside vibe,” said Kim Macy, a managing partner with Cove Spring. “The Culver corridor in Playa del Rey offers a ‘best kept secret’ appeal for professional service companies and creative agencies who like to office in a beach community for all its creative energies, amenities and workstyle, but could do without the crowds and increasingly challenging traffic along Lincoln Blvd. and the 405.”
The exclusive office compound will embrace a modern, coastal influence in design and structure, incorporating natural materials with a focus on sustainability integrated throughout. Cove Spring Partners commissioned Mikaela Nagler of MiKA design group, Inc. as design architect, and Tim Richardson is handling construction for Cove Spring Partners.
The collaborative vision of the design team resulted in a pair of modern office buildings featuring an efficient use of space with extensive application of glass to embrace views, sizable outdoor decks and functioning windows, and clean modern lines accented against natural materials that create connectivity to its streetscape and The Strand’s proximity to both the Coast and vast open space.
The two three-story buildings will sit on a private, gated compound. Each building will feature a first floor of covered parking stalls, providing tenants with ample parking for both employees and visitors and a lobby entry with elevator service. The second and third floors in each building will feature approximately 2500-square-foot office floorplates.
Cove Spring Partners will handle leasing of The Strand Offices at Playa del Rey directly. For leasing information, Contact Kim Macy, Cove Spring Partners at 310-577-5871 or email@example.com.
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