Oracle in contract to buy 2700 Colorado in Santa Monica for $368M: sources

Los Angeles /
Nov.November 10, 2016 02:05 PM

Updated, Thursday, November 10, 4:51 p.m.: In the priciest-ever per-square-foot deal in Santa Monica’s booming office market, Oracle is in contract to pay Invesco $368 million, or $1,165 per square foot, for an office building at 2700 Colorado Avenue, The Real Deal has learned.

Larry Ellison’s cloud-computing firm will move into the building, taking north of 100,000 square feet, sources said. The 316,000-square, five-story building is anchored by Lions Gate Entertainment, which occupies about 159,000 square feet, according to CoStar data. Sources said the entertainment company, which is itself looking for more Santa Monica office space after acquiring the cable network Starz, received notice this week of the building’s new ownership.

JLL’s Carl Muhlstein and Hayley Blockley were marketing the property on behalf of Invesco, sources said. They declined to comment, as did a representative for Oracle. Cresa’s Matthew Miller is representing Oracle, but did not respond requests for comment, nor did Invesco.

Rents at the property were not disclosed, but asking rates in Santa Monica average about $5.50 a square foot a month. Invesco made a hefty profit on the building, which it acquired last year for $284 million, or $899 per square foot, according to CoStar.

Oracle’s acquisition, when completed, is set to be the priciest-ever per-square-foot purchase in Santa Monica. The previous record for a building above 10,000 square feet was held by the SeaRise office tower at 233 Wilshire Boulevard, according to CBRE data. In September, Douglas Emmett acquired that property for $1,124 per square foot.

Artisan Partners’ $400 million acquisition of the Lantana office complex, which TRD first reported, clocked in at about $825 a foot, while Boston Properties paid $929 a foot for its $511 million purchase of a stake in the Colorado Center.

Oracle just signed a lease expansion at Santa Monica’s Water Garden, upsizing to 175,000 square feet from 90,000 square feet. It will occupy both that building and 2700 Colorado, sources said. The company completed its $9.3 billion acquisition of financial cloud software firm NetSuite on Monday. 

Invesco, which is based in Atlanta, Ga., is a major Westside landlord. The firm acquired the Runway at Playa Vista from Lincoln Property Company for $475 million earlier this year.


Related Articles

arrow_forward_ios
The Colorado Center with Hulu President Kelly Campbell and Boston Properties CEO Owen Thomas (inset) (Photos via Getty, LA Realty Partners)
Hulu adds space at Roku-occupied Colorado Center
Hulu adds space at Roku-occupied Colorado Center
Pen Factory, GoodRx CEOs Doug Hirsch and Trevor Bezdek. (Pen Factory, GoodRx)
GoodRx adds 57K sf at Santa Monica’s Pen Factory
GoodRx adds 57K sf at Santa Monica’s Pen Factory
Snap Inc CEO Evan Spiegel, Boston Properties CEO Owen Thomas and Santa Monica Business Park. (Getty, Boston Properties)
Snapchat’s parent company expands headquarters at Santa Monica Business Park
Snapchat’s parent company expands headquarters at Santa Monica Business Park
Stockdale Capital Partners' Co-Founders Shawn and Steven Yari with 1740 Ocean Avenue (Google Maps)
JW Marriott Santa Monica sells for $75M
JW Marriott Santa Monica sells for $75M
Black Equities Group's Stanley Black and Equity Residential's Mark J. Parrell. (Apartments.com, Getty, Equity Residential)
How Suite it is: Sam Zell’s Equity Residential sells SaMo rental complex
How Suite it is: Sam Zell’s Equity Residential sells SaMo rental complex
Roku CEO Anthony Wood, Boston Properties CEO Owen Thomas and Colorado Center. (Bostom Properties, WikiMedia / Collision Conf)
Roku inks long-term lease at Colorado Center
Roku inks long-term lease at Colorado Center
Tesla's new property is 82,000 square feet. (Getty, Daum Commercial)
Tesla inks big lease on office/warehouse in Santa Monica
Tesla inks big lease on office/warehouse in Santa Monica
Activision Blizzard CEO Bobby Kotick. (Getty, Activision)
Activision Blizzard vacates Santa Monica HQ, seeks new space
Activision Blizzard vacates Santa Monica HQ, seeks new space
arrow_forward_ios

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

Loading...