Fandango closing on 85K sf lease in Beverly Hills

The HQ move to 407 North Maple Drive will expand company’s LA footprint by 35K sf

Jun.June 27, 2016 04:06 PM

Ticket seller Fandango Media is riding high on recent acquisitions — including the purchase of Flixster and Rotten Tomatoes from Warner Brothers Entertainment. Soon, the Comcast-owned company will also have a flashy 90210 headquarters address to prove it has arrived.  

Fandango is close to sealing the deal on a lease for roughly 85,000 square feet at Tishman Speyer’s 407 North Maple Drive building in Beverly Hills, The Real Deal has exclusively learned. The move will add about 35,000 square feet to the company’s L.A. footprint.

Sources with knowledge of the transaction said the firm will take roughly half of the 168,442-square-foot building. Asking rent is listed on CoStar as $66 a square foot a year, which would value the lease at $5.6 million a year.

The asking rent is roughly in line with area averages. However, it’s possible that Fandango got a discount. The property has been vacant since Fox Interactive Media left a few months ago, when its lease expired. Leasing to Fandango, and any further leasing of the property, will help prevent Tishman from having problems refinancing the $220 million CMBS loan against the building and two other nearby properties: 335-345 North Maple Drive and 9232-9250 Beverly Boulevard.

The loan for the buildings, called the Maple Drive Portfolio, is securitized through JPMorgan Chase Commercial Mortgage Securities Trust, and matures next June, according to Trepp. The loan remains current.

Another property in the Maple Drive Portfolio could face vacancy in the near future. Netflix occupies 91,195 square feet at 335-345 North Maple Drive, but is likely to move out when its lease expires in August 2018, given that it just leased a whopping 323,000 square feet in Hollywood, as The Real Deal first reported.

Unlike Netflix, Fandango has less incentive to be in Hollywood proper. Sources with knowledge of the deal said the company would use the space at 407 North Maple for traditional offices, with no major tenant renovations planned.

David Toomey of Cresa represented Fandango in the deal but declined to comment. John Ollen, Patrick Nally and Melinda Mechoso were the internal representatives for Tishman Speyer, and declined requests. Fandango, additionally, could not be reached.

The move is a major expansion for Fandango, which currently takes 50,000 square feet at West L.A.’s Westside Media Center at 12100-12312 West Olympic Boulevard. It will vacate that property and fully relocate to Beverly Hills, sources said.

Tishman acquired the newly constructed building at 407 North Maple for $72 million in 2005 from a partnership between David Geffen and Bernard Salick. Geffen and Salick put the property on the market after they were unable to convince the Beverly Hills City Council to allow them to use the facility at as cardiac care center.

Related Articles

Kathryn Bigelow and the home (Credit: Trisha Leeper/FilmMagic/Getty Images, and Coldwell Banker)

The Hurt Valuation: Kathryn Bigelow slashes price on Beverly Hills home

From left: Jeff Bezos, the Beverly House and Lachlan Murdoch (Credit: Getty Images, Beverly House Estate, iStock)

Hearst estate owner hopes for $125M parachute amid megamansion frenzy

North Office at 301 Canon Drive and Jamie Duran

Coldwell Banker closes an office in Beverly Hills, and throws a big party

Lauren Sanchez and Jeff Bezos with the property at 1441 Angelo Drive (Credit: Getty Images and Redfin)

A $90 million patch of dirt: A look at Jeff Bezos’ other record LA deal this week

Amazon CEO Jeff Bezos with the home (Credit: Pintrest and Getty Images)

Jeff Bezos buys David Geffen’s Beverly Hills estate for record $165M

John Mirisch

Meet Sacramento’s worst nightmare: Beverly Hills mayor John Mirisch

A judge will let Hearst estate be used as cash collateral (Credit: iStock)

Start your timer: Leonard Ross has 4 months to sell Hearst mansion

William Randolph Hearst by his former home (Credit: Getty Images and Zillow)

Hearst estate owner pleads with court to let him sell mansion