In the heart of West Los Angeles, a prime opportunity emerged for investors in one of the city’s most sought-after creative hubs in the fourth quarter of 2023. “The Annex,” a 131,942 square-foot low-rise creative office campus in Playa Vista, was listed for sale.
Newmark’s Kevin Shannon, Michael Moll, Ken White, Rob Hannan, and Laura Stumm marketed the property. While initial pricing guidance was undisclosed, the property ultimately sold for $50.3 million, or just over $381 per square foot. This represented a significant decrease from its 2017 acquisition price of $95 million when it was purchased by LaSalle Investment Management. The buyer was Westside Neighborhood School, which was represented in the transaction by David Kimball of NAI Capital.
Situated at 5340 Alla Road on approximately five acres, the two-story creative office campus was originally constructed in 1972 and underwent renovations from 2012 through 2015. The campus offered a mix of workspaces, including editing bays and sound stage production space. The property also boasted outside amenity spaces with private patios and entryways.
At the time the marketing of the property started, The Annex had a range of contiguous vacancies, from 12,000 to 60,000 square feet, and was about 45 percent leased. Tenants included IPG Deutsch LA, Kastner, and Cosm. The property presented value-added opportunities by leasing the remaining spaces. Due to its zoning, the site could also accommodate up to 336,000 square feet, providing various redevelopment opportunities for the new buyer.
The Annex was conveniently located near the I-405, I-10, Marina Freeways, and the Los Angeles International Airport. The surrounding area was home to major tech and entertainment companies, including Google, Meta, Yahoo, and Activision.
The marketing brochure for The Annex highlighted Playa Vista’s emergence as a major hub for technology and media growth in Los Angeles, characterized by the rapid expansion of dynamic tenants in entertainment, technology, media, and content creation.
