Rockwood Capital in talks to buy Water’s Edge campus in Playa Vista: sources
The seller is a JV between DivcoWest and Maguire Partners
Rockwood is in talks to acquire Water’s Edge, a creative office campus in Playa Vista owned by DivcoWest and Maguire Partners, The Real Deal has learned.
The pending sale price for the 260,000-square-foot campus, which is home to Electronic Arts, is roughly $190 million, sources said. That would pencil out to about $735 per square foot.
The campus consists of two buildings across 6.5 acres, marketing materials show. The sale would include development rights for a third 130,000-square-foot building that is already part of its master plan.
Eastdil Secured has the listing but did not return requests for comment. Rockwood, Maguire and Divco could not be reached.
Maguire constructed both existing buildings in 2002. The 195,200-square-foot office at 5510 Jefferson Boulevard is 88.3 percent leased, CoStar shows. In addition to Electronic Arts’ 84,000-square-foot lease, the building is also home to Popchips, Doner and Pop Media Group. The second building, at 5570 Lincoln Boulevard, is fully leased and is anchored by L.A. Fitness.
DivcoWest formed a joint venture with Maguire in 2014, twelve years after Robert F. Maguire III developed the two buildings on the site. Divco paid $132.5 million for the stake, according to CoStar, and Maguire held onto a partial interest.
At the time of the stake sale, Maguire said he was looking for a partner to fund the third building. Construction did not, however, come to fruition under Divco’s ownership.
Century City-based Rockwood has been aggressive in Silicon Beach. It acquired Playa Jefferson from Vantage last summer for $165 million. It purchased the Gateway El Segundo from Divco that same year, with partner Lincoln Property Co.
Rockwood closed its “Real Estate Partners Fund X,” which received $1.1 billion in capital commitments, in Jan. 2017.
The fund is focused on acquiring office, residential, retail and hotel assets in urban and suburban areas in the United States.