Netflix inks leases for another 170K sf in Hollywood: sources

The streaming giant will occupy 817 Vine, and take over Zest’s sublease at 1350 Western

Apr.April 29, 2019 03:41 PM
817 Vine Street, 1350 North Western Avenue, and Netflix CEO Reed Hastings (Credit: Getty Images)
817 Vine Street, 1350 North Western Avenue, and Netflix CEO Reed Hastings (Credit: Getty

Netflix has signed two new leases for a combined 170,000 square feet of office space in Hollywood, The Real Deal has learned.

The deals come on the heels of another major expansion, bringing the streaming giant’s footprint in the submarket up to nearly 1.3 million square feet.

Netflix has fully leased 817 Vine, a 100,000-square-foot office campus that Lincoln Property Company owns. It’s also taking over a 68,000-square-foot sublease at 1350 North Western Avenue, formerly leased to ZestFinance.

The deals closed late last week, sources said.

A spokesperson for Netflix did not respond to immediate requests for comment but Daniel Chiprut, the Newmark Knight Frank broker who is listing Zest’s sublease, confirmed that move. A representative for LaTerra Development declined to comment, while Lincoln Property Co. could not be reached.

Netflix’s new office at 817 Vine is less than a mile from where Kilroy Realty’s Academy on Vine project is rising. Netflix is set to occupy 355,000 square feet there once it’s completed. The sublease on Western, meanwhile, stands about half-a-mile from Netflix headquarters at the Sunset Bronson Studios, owned by Hudson Pacific Properties.

Originally built for the Musician’s Union of Hollywood, the renovated office campus at 817 Vine Street includes two office buildings with a private landscaped courtyard in the middle. Lincoln Property tapped HLW International to design the rehabilitation project, which completed this year.

At 1350 North Western, Netflix will be taking over Zest’s 68,800-square-foot lease at the mixed-use complex, which is owned by LaTerra Development and Gemdale. Listing platforms advertise rents at the building for $47.40 per square foot per year, valuing Netflix’s lease around $3.3 million.

As Netflix looks to expand its content for a growing audience, it has at the same time boosted its real estate presence in Los Angeles. In addition to the office space it leases at several Hollywood buildings, the company is reportedly also looking to become a landlord.

Earlier this month, reports circulated that the streaming service was in talks to purchase the historic Egyptian Theatre in Hollywood. The deal would allow Netflix to operate the movie theater on weekdays, as well as for premieres of its exclusive films.

Related Articles

David Ryu with a Little Tokyo Galleria rendering

Under the (RE)influence: Councilman’s campaign funds scrutinized

Hudson Pacific Properties CEO Victor Coleman and the Westside Pavilion (Credit: Google Maps)

Hudson Pacific wants full control of Google-leased One Westside; not sweating WeWork

The North Hollywood and Topanga stores (Credit: Vallarta Supermarkets)

Vallarta Supermarkets plans huge grocery store in Van Nuys

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project

510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando

The former Omega Cinema Props warehouse on Santa Monica Boulevard and the Hollywood Forever Cemetery (Credit: Google Maps, Hollywood Forever)

Warehouse complex will get new life next to Hollywood Forever Cemetery

Holland Partner Group CEO Clyde Holland and a rendering of the Hollywood project

Holland Partner Group’s Hollywood apartment project faces labor union challenge

1723 N Wilcox Avenue (Credit: Google Maps)

Hollywood hotel construction craze: Developer abandons apartment project for hotel instead