April 09--New York real estate giant Tishman Speyer bought a prominent office building in Santa Monica, one of the hottest office leasing markets in the state.
Tishman bought 520 Broadway, a 113,000-square-foot building near the Santa Monica Freeway and the Third Street Promenade shopping and recreation district. The six-story structure was completed in 1981.
Terms of the sale by Vornado Realty Trust were not disclosed, but real estate experts familiar with Santa Monica valued the deal at more than $90 million. Vornado acquired the property in 2012 and conducted a $5-million renovation.
Tenants in the building include the Xbox video gaming division of Microsoft Corp., movie and television producer Zodiak USA and Boston Private Bank. It is more than 90% occupied.
Asking rents in the building are about $6 per square foot per month, according to real estate data provider CoStar Group. Average asking rents in Santa Monica are about $4.33 a foot, brokerage Cushman Wakefield said.
Overall office vacancy in Santa Monica is 8.6%, about half of the Los Angeles County average of 16%, the brokerage said.
