Case Studies - Industry Partners

811 Traction Ave

Downtown Los Angeles

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Case Study

Landlord Representation

811 Traction Ave

From 0 activity to 100% leased in under a year.

Industry Partners was able to lease the entirety of the building while also increasing rents by almost 10% all in under 11 months.

Project Size

22,200 SF

Project Duration

April 2017—March 2018

Project Team Members

Industry Partners, Kareco, Inc.

811 Traction Ave

From 0 activity to 100% leased in under a year.

The Deal

811 Traction Ave is a three floor brick building located in DTLA’s bustling Arts District. The top two floors totaling about 22,000 SF are split for multitenant creative office users, while Groundwork Coffee and Pali Wine Co occupy the ground floor.

The Landlord, Kareco Inc, acquired the building in April 2016 and made base building improvements, delivering warm shell space for new tenants. Although improvements were completed a different brokerage team was unable to deliver a single deal to the Landlord. Following a year of total inactivity, the Landlord replaced the brokerage team with Industry Partners in April 2017.

When Industry Partners took over the leasing assignment the building was 57% vacant, with an asking rate of $3.45 per SF MG. Our team of brokers collaborated with the Landlord to develop a spec suite plan and produced and aggressive marketing campaign to put back the space in the market. Just eleven months later Industry Partners was able to completely lease the space with deals ranging from $3.60 to $3.75 / SF MG and with 3-5 year terms. The creative tenants that our team was able to bring include Thank You For Lunch, Doomsday, Krupa Consulting, Mulholland Distilling, Rosco, and Redcate.

Insights

Although the building has an exceptional location— right at the heart Arts District, the building has very limited parking and nearby parking options are scarce. This was a major challenge when marketing the building to quality tenants, however Industry Partners focused the marketing on location and the authentic industrial character of the building, which are the two major reasons why creative tenants look into moving to the DTLA’s Arts District. The number of amenities in the vicinity and access to public transit including Metro made it a viable option.
Carbon Five

Santa Monica

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Case Study

Tenant Representation, Landlord Representation

Carbon Five

525 Colorado Ave

Relocation to new Downtown Santa Monica building and space

Project Size

5,050 SF Stand-Alone Building

Project Team Members

Industry Partners, and Brentwood Capital Partners

Carbon Five

525 Colorado Ave

The Deal

Industry Partners worked with software development and design firm Carbon Five to accommodate their growing business while staying in Downtown Santa Monica. After a brief search, Industry and Carbon Five zeroed in on 525 Colorado Avenue. The 5,050 SF red brick, stand-alone building was exactly what they needed. Previously the headquarters for the Culinary Workers and Bartenders Union, the property provided a unique opportunity for a company of this size to occupy a single tenant, free-standing red-brick building in the highly sought after Downtown Santa Monica office market. The space was custom design and built to suit for Carbon Five’s expansion needs over the next five years. Industry’s Travis Landrum and Jim Jacobsen negotiated on behalf of longtime client Carbon Five, while Industry’s Trevor Belden negotiated on behalf of longtime client and landlord Brentwood Capital Partners.

Insights

For Carbon Five, it was important to stay in Downtown Santa Monica for its convenience and amenities, but also to be close to their employee base and pool of potential recruits. Their new space at 525 Colorado Avenue has placed them front and center to everything Santa Monica has to offer, including two new hotels on Colorado, as well as the soon-to-open Expo Line Station at Colorado & 4^th Street.
PacMutual

Downtown Los Angeles

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Case Study

Landlord Representation

PacMutual

Repositioning of an architectural jewel in DTLA’s financial district.

Built between 1908 and 1926, PacMutual is rich in architectural character in DTLA. The property has gone through an extensive rehabilitation and repositioning as a creative office and retail campus. Today it is the standard in high quality creative office space in Downtown Los Angeles—leading the market in occupancy and rates.

Project Size

3 Buildings Totaling 464,000 SF on 1.8 acres

Project Duration

2012-2015

Project Team Members

Industry Partners, Rising Realty Partners

PacMutual

Repositioning of an architectural jewel in DTLA’s financial district.

The Deal

Built between 1908 and 1926, the Pacific Mutual Life building was for decades the premier office building in Downtown Los Angeles. However, in response to the modern high rises coming out of the ground, the building was “modernized” in the 1970s and 80s. Following their purchase of the project in 2012, Rising Realty Partners engaged Industry to reposition the building as DTLA’s best in class creative option. Between a comprehensive PR push, smart marketing materials, a “hands-on” approach to selective demolitions, construction of spec suites, and leveraging Industry’s relationships with non-traditional tenants and their brokers, the building has gone from 60% leased to over 95% and rents are on par with “Class A” DTLA high rises. The end result is DTLA’s most successful creative office project that is leading the DTLA creative market. The most notable tenants at the time Industry Partners was in charge of leasing PacMutual included fashion brand Nasty Gal, architecture firm NBBJ, visual effects firm Magnopus, Tender Greens, and Le Pain Quotidien.

Rising Realty Partners in 2012 first purchased PacMutual for $60 million. In early September 2015, PacMutual sold for $200 million.

Insights

PacMutual is a beautiful, historic building that needed an inspiring vision to execute. Working with owner Rising Realty Partners, Industry Partners’ goal was to create a lifestyle campus that communicated the new urbanity of DTLA. A place that complemented the life of DTLA residents who also work at PacMutual. From the high quality tenant improvements and drastic common area improvements, to bringing the right mix of food and beverage, PacMutual is a direct response to the way people want to work today—in a space that is well thought out, located in a place that is walkable and filled with opportunities to engage with people, food, art, and culture.
Rock Paper Scissors

Santa Monica

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Case Study

Tenant Representation

Rock Paper Scissors

2208 Broadway Santa Monica

Long-time residents of West Hollywood, Rock Paper Scissors was reluctant to leave a speciﬁc block on Almont where neighboring Maxﬁeld, Ridley Scott and other tastemakers also called home. However, a west side location, with airport proximity, became a necessity for visiting editors and guests.

Project Size

20,000 SF

Project Duration

10 years

Project Team Members

Industry Partners

Rock Paper Scissors

2208 Broadway Santa Monica

The Deal

After a decade surveying the Westside market, Rock Paper Scissors remained unmoved; there wasn’t a 20,000 SF space for lease available. One building, owned by Cynergy Films/Sylvester Stallone, ﬁt their vision, but was not for sale (nor was Rock Paper Scissors persuaded to buy yet.) In order to get Rock Paper Scissors into the space, Industry structured a unique deal where the building was sold to a new owner who then leased to Rock Paper Scissors.

Insights

A long-term commitment was made from the beginning; whether it took six months, one year, or ten years (as it did), Industry would ﬁnd the right west side property for Rock Paper Scissors. Although Cynergy/ Stallone wasn’t selling their property, Industry convinced them to let it go. The lease was signed the day escrow closed; the client moved in hours later. Because the space was slightly too big for Rock Paper Scissors, Industry secured two-sub leases; Hollywood insiders Paul Haggis and Lance Accord, who both took 2,500 SF spaces. Additionally, both Rock Paper Scissors principals needed to relocate their families to the west side. Industry handled this transition seamlessly so that timing, requirements and ﬁnancing, all lined up.
Beats by Dre

Culver City

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Case Study

Tenant Representation

Beats by Dre

Searching for a building that was an extension of the brand

Relocation from a Class A building in Santa Monica to a creative office space in Culver City

Project Size

180,000 SF

Project Duration

2012-2013

Project Team Members

Industry Partners, Beats, Barbara Bestor

Beats by Dre

Searching for a building that was an extension of the brand

The Deal

Beats started at the Water Garden in Santa Monica, close to Interscope Records where Beats co-founder Jimmy Lovine was also co-founder and chairman. At its foundation Beats was not fond of the corporate feel of their space and wanted something more reflective of their style.

Industry Partners, with Savills Studley as a co-representative, worked with Beats to search the market for the right place.

In an effort to show non-traditional, formable office space, Culver City emerged as a starting point. Beat’s initial requirement was 40,000 SF of space and Industry Partners surveyed the market and presented a few options. Beats eventually landed on a tilt-up building at 8476 Steller Dr that fit their need, but then Beats saw an opportunity to expand and create a campus with leasing an additional 15,000 SF next door at 8454 Steller Dr and another 16,000 SF at 8501 Steller Dr for storage use.

At the time, the leases were signed with three different owners. Once they started planning work for their first two buildings, it became apparent that Beats was going to need more space.

One of the spaces they had looked at initially was just over 100,000 SF at Hayden and Higuera, but at the time the space felt too large for the company. Only a few months later, it would prove the right fit for their on-going expansion. The addition of the 100,000 SF also afforded Beats access to much needed parking at Hackman Capital’s nearby 400-car parking structure. Altogether, Beats assembled a campus with 180,000 square feet.

Insights

Industry Partners introduced acclaimed LA architect Barbara Bestor to Beats, and a collaboration for one of LA’s most remarkable office interiors took off.

Industry Partners’ relentless aim to serve client needs lead to inventive approaches, successful partnerships, and ultimately the creation of a space that truly reflects the values of one of the most successful music hardware companies in the world.

In the case of Beats, their flurry of growth led to changing requirements that ultimately resulted in a cohesive, multi-building campus in what’s now one of the most active creative office enclaves.