Onni Group has signed a new tenant at its Wilshire Courtyard office property in Los Angeles’ Miracle Mile. CO Architects will occupy 27,461 square feet on the fifth floor of Wilshire Courtyard West, one of two buildings comprising the 1 million-square-foot campus.
Cushman & Wakefield represented Onni Group in the deal, while Savills acted on behalf of CO Architects.
Onni Group acquired Wilshire Courtyard for $630 million from Tishman Speyer in 2019, according to CommercialEdge. Natixis had financed the acquisition with a $550 million floating-rate loan.
Wilshire Courtyard is located at 5700 and 5750 Wilshire Blvd. and comprises two six-story buildings constructed in 1987. The Class A properties feature floorplates ranging from 38,000 to 100,000 square feet. Tishman Speyer had completed a range of interior and exterior capital improvements in 2015. The campus offers 125 tiered, outdoor balconies, a park with a jogging trail and other common-area amenities.
The property’s tenant mix includes Equinox Fitness, Mob Scene, Fox Animation Studios and Katz Media Group. Wilshire Courtyard currently has 400,000 square feet of space available for lease.
The campus’ location within the Miracle Mile allows for immediate access to multiple shopping and dining destinations. The extension of the Metro Purple Line, currently under construction, will add a station adjacent to the office campus.
Expansion on the horizon?
Developer Onni Group submitted an application to the City of Los Angeles to add high-rise buildings to the campus, which would eventually bring the asset to 2.3 million square feet, Urbanize Los Angeles reported last summer. The City Planning website lists the development as on hold so it is not yet clear if or when the project will move forward.
Vacancy rates in Los Angeles have climbed 280 basis points year-over-year, reaching 13.8 percent in March, a CommercialEdge report shows—closely following the 15.6 national average. However, leasing rates also rose by 3.6 percent year-over-year, the same report shows, with landlords confident in a market rebound as many tenants consider plans to return to the office.