The Georgetown Co. Pays $93M for Hollywood Media Campus

Hollywood Media Campus. Image courtesy of Newmark

In a $93 million deal, The Georgetown Co. has acquired the Hollywood Media Campus in Los Angeles. Newmark represented Gemdale USA Corp., the seller of the 3.5-acre office campus site comprising the 75,593-square-foot office building and an adjacent development parcel.

“We’re excited about the growth potential in Hollywood and in Southern California broadly. The neighborhood is in the midst of an impressive renaissance with innovative technology firms joining the entertainment and media companies the area is known for, creating a unique and vibrant community,“ Michael Fischer, senior vice president of The Georgetown Co., told Commercial Property Executive.

The three-story building is fully leased to Netflix via a sublease from master lessee Zest Finance. The property was built in 1922 and 2010, according to CommercialEdge data.

Netflix recently invested in an extensive renovation of the campus. Situated in an Opportunity Zone, the property provides its owner the ability to reduce capital gains taxes by 100 percent for 10 years.

“We plan to explore a number of exciting development options on the site and we are also actively considering other opportunities in the market,” Fischer added.

In 2015, the property traded for $51.3 million, according to CommercialEdge data. A total of 416 parking spaces are available at the location in a 5.9 spaces per 1,000 square feet parking ratio, according to the same data provider.

Valuable tenant and location

Located at 1350 North Western Ave., the asset is less than 1 mile southeast of Netflix’s 1.3-million-square-foot Hollywood headquarters. Interstate 101 is also less than 1 mile west, while Hollywood/Western MTA Station is less than a mile north. Several retail, dining and entertainment options are also situated within a 1-mile radius, while downtown Los Angeles is some 6 mile southeast.

Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Laura Stumm led the Newmark team that represented the seller.

Boosted by consumer demand for content, entertainment companies have been at the forefront of the Los Angeles office market recovery, especially on the Westside, according to Newmark Research. A total of 116 office sales were recorded in 2021, comprising more than 9 million square feet of space across metro Los Angeles.