Home Of Universal Music In Santa Monica Sells For $185M

Courtesy of Drawbridge Realty
The Arboretum Gateway At 2220 Colorado Ave. In Santa Monica.

Drawbridge Realty has purchased 2220 Colorado Ave. in Santa Monica, also known as the Arboretum Gateway, for roughly $185M, Bisnow has confirmed.

Drawbridge announced the purchase but did not disclose a sale price. The price translates to roughly $819 per SF.

The sale marks one of a few major office trades this year that hasn't featured a distressed asset or a large price cut from a previous sale.

“This is a high-quality property with a strong, long-time tenant and a very creative build-out that establishes the building as one of the signature assets in Santa Monica,” Drawbridge Realty Vice President of Investments and Asset Management Jaden Rosselli said in a release.

The approximately 226K SF, Class-A building in Santa Monica’s media district is 100% leased to Universal Music Group as its operational headquarters. Universal signed a lease extension for the entire six-story property in the second quarter of this year, Commercial Observer reported at the time.

Universal operates two recording studios at the Arboretum Gateway, which also features conference rooms, direct-access parking, outdoor decks and on-site food and coffee offerings.

The seller, Clarion Partnersbought the property in 2004, paying $95M, according to The Registry, which also reported in June that Clarion listed the property for sale. A Newmark team led by Kevin Shannon represented Clarion in the transaction.

Office sales have been sluggish, and those trading hands are often deeply discounted. There are outliers, however, such as the $118M sale of a Tishman Speyer property in Beverly Hills to clothing company Fashion Nova, which worked out to about $674 per SF.

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