FPM Development has inked a $42 million deal to sublease 100,000 square feet at the former headquarters of Sweetgreen in L.A.’s West Adams.
The unit of an unidentified hydrogen fuel cell company, FPM subleased the offices from the fast-casual restaurant chain at 3101 Exposition Place, CoStar News reported, citing a regulatory filing.
The salad chain pre-leased the property in 2019 and listed for sublease both the 57,000-square-foot first phase and 36,000-square-foot second phase of construction in early 2022.
FPM took over most of the initial phase at the beginning of the month, and is expected to assume the remaining offices this summer.
The sublease is set to run through February 2032, with the fuel-cell company estimated to pay a total of more than $42 million, excluding management fees or property expenses, according to CoStar.
Sweetgreen’s former hub includes lounge areas, a staff kitchen, an outdoor patio and an herb garden. It was designed by Abramson Architects to “encourage collaboration and a lively office energy.”
It’s in a gentrifying West Adams neighborhood southwest of Downtown Los Angeles and near Culver City, a recent draw for entertainment and tech firms. It’s also near the Expo/Crenshaw Metro station and Interstate 10.
The neighborhood “has completely outperformed the rest of the market,” Asher Luzzatto, president of Luzzatto, the building landlord, told CoStar News. “There are certain micromarkets that, for different reasons, will be part of the future for Los Angeles and other cities.
“This area in particular has had a ton of success because the location is so central and transit-oriented. It’s a really critical node.”
Sweetgreen put its headquarters on the market after evaluating its real estate needs in response to a shift to remote work. The site of its new headquarters, if any, was not disclosed. According to state business records, the firm is now based at 3102 36th Street in Los Angeles.
— Dana Bartholomew
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