Updated, Wednesday, December 7th, 2016, 11:37 a.m.: WeWork, which has a $16.9 billion valuation, is expanding to its 12th location in Los Angeles.
The prolific co-working company recently inked a 64,000-square-foot lease at a Class A office building in Century City, according to multiple sources.
The 15-year lease with landlord JMB Financial Advisors for space at 10250 Constellation Boulevard is at a rate of $4 per square foot a month, sources told The Real Deal. It amounts to a value of more than $46 million.
L.A. Realty Partners’ Hunt Barnett and Gary Weiss were the listing brokers, according to CoStar, but they declined to comment on the details of the lease. WeWork represented itself in the deal, which was a long time in the works, according to sources with knowledge of the lease who were not directly involved.
Dubbed Constellation Place, the building was developed by JMB, which is based in Chicago. The firm also manages the roughly 800,000-square-foot building. It is about 93 percent occupied, according to CoStar, and houses tenants mostly in the corporate, financial or entertainment fields. Its biggest tenant is ICM Partners, an entertainment agency.
WeWork has seized L.A.’s co-working market with full force over the past two years. In April, the company signed on for at least 75,000 square feet at Hudson Pacific Partners’ Playa Vista project, called the Landing, at 12655 West Jefferson Boulevard. Around the same time, it also announced expansions in Culver City and Pasadena.
Its debut in L.A. was in 2011, with a 35,700-square-foot space at 7083 Hollywood Boulevard in Hollywood.
The firm declined to comment on its most recent lease.
“We are always looking for new communities, and are committed to L.A., but have no announcements to share at this time,” a representative of the company told TRD in an emailed statement.
WeWork is expected to move into its new office in spring 2017.
Correction: An early version of this story listed WeWork’s valuation at $16 billion. It is $16.9 billion.