Tishman Speyer nearing purchase of Hyperloop One HQ in Arts District for roughly $25M

Los Angeles /
Oct.October 14, 2016 06:00 PM

October is proving to be quite a month for Downtown’s Arts District. First, Warner Music’s lease at Shorenstein’s Ford Factory became more than just a rumor. Now, a major institutional office owner is getting ready for its neighborhood debut.

Tishman Speyer is in contract to buy Hyperloop One’s four-building headquarters at 2145-2161 Sacramento and 2136-2159 Bay Street, sources told The Real Deal. It will pay the sellers, Lion Real Estate Group and Mark Borman, roughly $25 million, or $662 per square foot, for the 37,785-square-foot campus in a deal that is expected to close next week.

Tishman’s plans for the site are not yet known. However, sources said zoning in the area would allow the firm to build a denser campus, potentially removing one of the industrial buildings and replacing it with a taller structure. The buildings sit on a 74,000-square-feet lot. Hyperloop uses the outdoor space as its tinkering area as it works to develop a lightning speed transportation network — the vision of Elon Musk. The company has several years left on its lease, though the exact lease length is not known.

John Zanetos of CBRE is representing both the buyer and the seller in the deal, sources said. He could not be reached for comment.

Lion and Borman acquired the two parcels that comprise the site in different transactions totaling $7.8 million, according to CoStar. The partners bought the Sacramento side for $3.1 million in August 2014, and the Bay Street side for $4.7 million in 2015. They gave the site an extensive renovation, recently erecting two parking risers.

Mark Borman and Lion Real Estate Group declined to comment. A representative of Tishman Speyer could not be reached.

Lion and Borman have partnered on several renovation projects in the Arts District, and recently sold one for a per-square-foot rate that is almost identical to Hyperloop’s pricetag. After a makeover and lease-up, they sold the retail and office buildings at 2014-2020 and 2028 East 7th Street for $665 a square foot.

Tishman owns a portfolio of properties throughout Los Angeles, including complexes in Miracle Mile and Hollywood. This is its first venture in the Arts District.

This week, Hyperloop One announced that it received $50 million in a funding round from DP World Group of Dubai. The company also hired former Uber CFO Brent Callinicos as a full-time strategic advisor.


Related Articles

arrow_forward_ios
FS Investments' Michael Forman and Tishman Speyer's Rob Speyer with 555 South Aviation Boulevard (Tishman Speyer, LoopNet, iStock)
Tishman Speyer notches priciest LA office sale of year
Tishman Speyer notches priciest LA office sale of year
From left: East End Capital’s Jonathon Yormak and David Peretz and 1338 East 6th Street and 1321 Wholesale Street (East End, Loopnet)
East End Capital’s tab on DTLA site for studio complex: $240M
East End Capital’s tab on DTLA site for studio complex: $240M
Tishman Speyer’s Rob Speyer and CommonWealth’s Brett Munger with 1275-1395 Crossman Avenue (Tishman Speyer, CommonWealth Partners)
LA investor buys Meta campus in Sunnyvale for $700M
LA investor buys Meta campus in Sunnyvale for $700M
Rendering of the 8th and Alameda Studios project (Rios)
Atlas Capital moves on $650M studio project in DTLA
Atlas Capital moves on $650M studio project in DTLA
Legendary Group's Dilip Bhavnani and 411 S. Hewitt Street (Gensler, LinkedIn)
Developer upgrades plans for Arts District office tower to 18 stories
Developer upgrades plans for Arts District office tower to 18 stories
Breakthrough Properties’ Dan Belldegrun, Tishman’s Rob Speyer and Bellco Capital’s Rebecka Belldegrun (Breakthrough Properties, Tishman, Bellco Capital)
Tishman Speyer, Bellco Capital JV raises $3B for life science buys
Tishman Speyer, Bellco Capital JV raises $3B for life science buys
Vernon Mayor Leticia Lopez (iStock, City of Vernon)
Industrial burg of Vernon to make way for housing
Industrial burg of Vernon to make way for housing
Tishman Speyer CEO Rob Speyer and Blackstone Mortgage Trust CEO Katie Keenan (Tishman Speyer, Blackstone, iStock)
Tishman Speyer scores loan on Santa Monica portfolio
Tishman Speyer scores loan on Santa Monica portfolio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...