Starwood Capital set to buy part of Lantana office campus for $220M: sources

The deal would follow David Ellison’s Skydance Media, which recently paid $321M for the other 2 buildings on the campus in Santa Monica

Aug.August 07, 2019 05:00 PM
Starwood Capital Group CEO Barry Sternlicht and Lantana campus (Credit: Getty Images and Ehrlich Yanai Rhee Chaney Architects)
Starwood Capital Group CEO Barry Sternlicht and Lantana campus (Credit: Getty Images and Ehrlich Yanai Rhee Chaney Architects)

Starwood Capital Group is nearing a deal to purchase the remaining two buildings of the Lantana office complex in Santa Monica for $220 million, The Real Deal has confirmed.

The buildings, collectively known as the south campus, span 203,000 square feet, valuing the deal around $1,080 per square feet. That’s about $70 less per square foot than what David Ellison’s company, Skydance Media, paid for the other two buildings on the property earlier this year. Skydance paid $321 million for its portion.

Artisan Realty Advisors and Brightstone Capital Partners were the sellers. They paid $400 million for the 484,840-square-foot campus in 2016.

Mark Laderman, managing partner at Artisan, declined to comment. Miami-beach based Starwood, led by CEO Barry Sternlicht, did not respond to requests for comment.

Eastdil Secured brokered the deal. Real Estate Alert first reported the story on the Starwood deal.

The buildings, located at 3003 and 3301 Exposition Boulevard, are fully leased by Beachbody. Beachbody, which is responsible for home fitness videos P90X, subleased 50,000 square feet at 3003 Exposition Boulevard — the former IMAX headquarters — to the Tennis Channel in March 2018.

Skydance, the production studio behind “Star Trek Beyond,” paid $321 million for the north campus buildings in March. Lantana North and Lantana West, as the buildings are named, encompass 278,860 square feet. Nearly half of that space is leased to WeWork.

On Wednesday, Starwood Property Trust, an affiliate of Starwood Capital, reported net income was up 16 percent to $127 million in the second quarter.

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