Oracle, the Austin-based software firm run by billionaire Larry Ellison, has put an office campus in Santa Monica on the sales block, The Real Deal has learned.
The company is looking to sell its roughly 320,000-square-foot complex at 2600 Colorado Avenue, according to Avison Young marketing materials obtained by TRD. Oracle did not immediately respond to a request for comment.
Oracle bought the property from Worthe Real Estate Group for $254 million in 2016, records show. Worthe still manages the building.
Despite owning the building, Oracle only occupies about 90,000 square feet there.
Its largest tenant is Lionsgate, though the movie studio is looking to sublease about 40,000 square feet of its almost 192,000-square-foot headquarters at the building. In September, the studio listed the space for sublease with a monthly asking price of about $5 per square foot.
Lionsgate’s lease is up in August of next year, the marketing materials show.
The property is now 36 percent vacant, higher than Santa Monica’s average office vacancy of 25 percent in the third quarter, according to brokerage Savills.
Many investment firms are exploring sales of large office buildings, as vacancy across L.A. has barely improved since the pandemic spurred remote work and subleasing has risen.
JPMorgan recently put its 1.4 million-square-foot Water Garden complex down the street in Santa Monica up for sale. Oracle also leases space at that property.
Further inland in Downtown L.A., CIM Group has listed a roughly 215,000-square-foot office building at 801 South Grand Avenue for sale, with an asking price of $55 million. The firm bought the property for $53.5 million in 2013.
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