Tishman Speyer said it bought a top-tier office building in Santa Monica, California, from Vornado Realty Trust to add real estate in a market where it’s difficult to get approval for new projects.
The 113,000-square-foot (10,500-square-meter) building is two blocks from Santa Monica’s Third Street Promenade shopping district, and tenants include Microsoft Corp., said Mark Laderman, a regional managing director at Tishman Speyer. The New York-based landlord bought the property late last month for about $91 million, said a person with knowledge of the deal who asked not to be identified because the price isn’t public.
“Santa Monica has a special reputation as being extraordinarily difficult to build in,” said Laderman, who wouldn’t comment on the price paid. “To be able to buy an existing asset of this quality in this supply-constrained of a market was an amazing opportunity.”
The purchase of 520 Broadway follows Tishman Speyer’s acquisition last year of Murdock Plaza in the Westwood neighborhood of Los Angeles. The company also owns the Wilshire Courtyard office campus near the Los Angeles County Museum of Art.
Vornado bought the Santa Monica building in 2012 and spent about $7 million on a renovation to modernize the lobby, create a public plaza and enhance the facade, Laderman said. The six-story property is 93 percent leased to tenants including WeWork Cos., a provider of shared office space that’s taking two floors starting midyear, he said.
Cathy Creswell, a Vornado spokeswoman, didn’t immediately return a telephone message seeking comment on the transaction.