The former headquarters of Playboy Entertainment on Sunset Boulevard is on the market and could draw bids as high as $200 million, according to REAlert.
The West Hollywood commercial complex, owned by Palo Alto-based Broadreach Capital, spans 178,000 square feet and contains four structures. It’s currently 87 percent occupied.
The 2.3-acre property, dubbed the Sunset, is anchored by a 10-story, 71,000-square-foot office building, REAlert reported. The three other buildings comprising the complex are low-rise and contain mostly retail space. Top retail tenants include Equinox Fitness, H&M and Olivers People.
Listing brokerage HFF is marketing it as as a value add opportunity, since a new owner could potentially boost profits by leasing the vacant space and raising below-market rents.
Broadreach acquired the complex, at 8560-8590 Sunset Boulevard, in 2006 for $105 million. Its previous owner was Apollo Real Estate.
Just next door, CIM Group is developing the $365 million Sunset La Cienega project, which will include the 296-room boutique James Hotel, operated by New York’s Denihan Hospitality Group. And a few blocks down, a massive Frank Gehry-designed mixed-use complex is freshly in the works after receiving final approval from the planning commission. [REAlert] — Cathaleen Chen