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The Real Deal Los Angeles

Tishman Speyer selling 1M sf Miracle Mile office campus: sources

Bids could start in the mid 9-digit range
By Natalie Hoberman | September 13, 2018 02:00PM

Wilshire Courtyard, Tishman Speyer CEO Rob Speyer

UPDATED, Thursday, Sept. 13, 3:45 p.m.: Tishman Speyer is putting the sprawling Wilshire Courtyard office campus in Miracle Mile up for sale, The Real Deal has learned.

Sources close to the deal say the 8.7-acre property is hitting the market without a price tag. A person familiar with the listing said Tishman is expecting bids around $600 – $650 million.

At 1 million square feet, the listing provides one of the few remaining opportunities in L.A. to acquire a campus of that size.

Earlier this year, another similarly large property on the Westside spurred a bidding war among deep-pocketed institutional buyers looking to invest in the Santa Monica market. Boston Properties ended up purchasing the ground lease at the Santa Monica Business Park for $616 million, notching the priciest deal in 2018 so far.

The Wilshire Courtyard campus includes two, six-story Class A office buildings separated by a manicured courtyard. There is also a three-story parking garage, 16,000-square-foot fitness center and Coffee Bean & Tea Leaf on the property.

Eastdil Secured has the listing.

New York-based Tishman Speyer bought the property, at 5700 and 5750 Wilshire Boulevard, from RREEF in 2012 for $423 million. The acquisition was funded in part by a $193 million, seven-year loan issued by Morgan Stanley.

Tishman then completed a multi-million dollar renovation in 2014 to update the plazas, lobbies and balconies.

A spokesperson for Tishman Speyer, as well as brokers at Eastdil, declined to comment.

The corporate campus is currently 60 percent occupied, according to CoStar analytics. Vacancy at the Miracle Mile property took a significant hit when E! Entertainment Television, once the biggest tenant, terminated its nearly 400,000-square-foot lease early and moved to Universal City.

Other tenants include the Los Angeles Business Journal, Coffee Bean’s corporate headquarters and IPG Mediabrands.