The Real Deal Los Angeles

Shopping app Honey inks 23K sf lease for offices above DTLA parking structure

Startup will leave Onni's 600 Wilshire to expand in L&R Group-owned building
By Cathaleen Chen | December 22, 2016 02:00PM

The building at 990 West 8th Street and Honey co-founder and CEO George Ruan (Credit: CBRE, Honey)

Honey, an online shopping browser extension, is the latest tenant to join the Downtown creative class with its new, 23,000-square-foot lease at an office above a parking structure just outside the Financial District, near the 110 Freeway.

The tech company will occupy the entire top floor of L&R Group’s six-story building at 990 West 8th Street, The Real Deal has learned. Honey will also receive building signage rights.

In the lease transaction, Honey was represented by Marc Bretter and Griffin Farriss of Cresa. The landlord’s agents were CBRE’s Phillip Sample, Brad Chelf, Chris Caras, Brandon Bank, and Taylor Watson.

Additional terms of the long-term lease were not disclosed. The asking rent for the building is $3.50 per square foot per month, Sample told TRD. That puts the value of the lease in the ballpark of $9.7 million — presuming it is 10 years in length.

Honey, a free application, finds and applies coupon codes for online shoppers.

Developed by L&R two years ago, the property on 8th Street has ground floor retail space and top floor offices with five levels of parking in between. The offices were previously occupied by L&R itself, but the parking lot landlord decided to disperse its offices.

Honey is moving from Onni Group’s 600 Wilshire, Sample said. The new lease is triple the size of its old one, he said. The company will move into the space at the end of the January.

Just across the street, the three-tower Metropolis project will contain 1,500 condo units, an 18-story hotel, and plenty of retail space when it opens in 2018.