Office Tenants Ink Five Deals for 91,000 SF

LOS ANGELES-Office tenants have signed five new leases totaling more than 91,000 square feet in Los Angeles and its submarkets, according to brokers involved in the deals. The largest of the leases is a five-year commitment for 37,772 square feet by entertainment software firm Nexon America Inc. in El Segundo.

Nexon’s space is at 222 N. Sepulveda St. and is valued at approximately $4.4 million, according to Colliers International, which represented the software firm in the deal with building owner Pacific Corporate Towers LLC. Nathan Pellow, senior vice president in Colliers international’s Downtown Los Angeles office, says that Nexon is expanding and relocating from the Mid-Wilshire area because of the lower taxes, close proximity to Los Angeles International Airport and surrounding neighborhood in El Segundo. Pellow and Geoff Ludwig, senior vice president in Colliers International’s Torrance office, represented Nexon.

Pellow adds that Nexon was also attracted to Pacific Corporate Towers because of its amenities, including an on-site restaurant, fitness center and basketball court, along with park-like common areas and plentiful parking. The 24-story building, built in 1974, is part of Pacific Corporate Towers. Nexon America will occupy the second and third floors as its North American headquarters.

“Nexon’s employees work long hours and they were looking for an upgrade to both their office location and building quality. We were able to accomplish this and save them some money in the process,” Pellow says. Pacific Corporate Towers was represented by Grafton Tanquary and Erin Grannis of CB Richard Ellis.

In another deal in which Pellow represented the tenant, the law firm of One Bunker Hill Law LLC signed a five-year lease renewal for 15,874 square feet of office space at 601 W. Fifth St. in Downtown Los Angeles. According to Pellow, the law firm will cut costs and the landlord will update the space as part of the new agreement, which is valued at $1.7 million.

The tenant will continue to occupy the eighth floor of the historic building, known as One Bunker Hill. Formerly called the Southern California Edison Building, it was one of world’s first all-electric buildings and the first in the Western US. Constructed in 1931, the building features Art Decco-style architecture and a lobby with more than 25 different types of marble. The landlord, Downtown Properties, LLC, was represented in-house by Eric Bender.

In a $4.5 million deal at the Oppenheimer Tower at 10880 Wilshire Blvd. in Los Angeles, Madison Partners reports that the accounting firm of Savitsky Satin & Bacon has signed a eight-year lease for 13,500 square feet in the 25-story, class A office building, which is owned by Equity Office Properties. Equity Office was represented internally by Andrew Goodman and by Madison Partners principals Hunt Barnett and Chris Houge along with directors Beau Rawi and Karly Nolen. Savitsky Satin & Bacon was represented by Jeff Cowan of Studley.

In a sublease at the same building, the law firm of Theodora Oringher Miller and Richman has signed for approximately 14,000 square feet in a five-year deal valued at $2 million. Barnett notes that the lease provides the subtenant with “a fully furnished office with very nice existing improvements.” Madison Partners represented the subtenant; the sublandlord, CIBC World Markets Corp., was represented by cooperating broker Scott Menkus and Eric Olofson of Cushman & Wakefield.

In a 10,000-square-foot lease at 1160 East Mariposa Ave. in El Segundo, Jones Lang LaSalle reports that Dutch firm Bugaboo International has signed a five-year lease to move its North American headquarters to El Segundo from New York. Bugaboo, which designs and manufactures children’s strollers and other products, will also operate a retail store front at 1160 Mariposa, which is a single-story, freestanding building owned by LM Pacific Properties.

Bugaboo International was represented by Jones Lang LaSalle managing director Gary Horwitz and vice president Jason Fine. The building owner was represented by Bill Bloodgood of CB Richard Ellis.

The 1160 Mariposa building is undergoing a conversion to custom creative office use, with group vice president Maria Naughton of Jones Lang LaSalle’s Project and Development Services Group managing the build-out on behalf of Bugaboo. The company previously had a small office in Hermosa Beach that was the impetus to establish its North American headquarters in El Segundo, where it is expecting to move into its new offices in January.