Rockwood Capital JV Expands LA Office Campus

By IvyLee Rosario

Water’s Edge, Playa Vista, Calif.

A joint venture of NR IV—an affiliate of Rockwood Capital—, GIC and Marshall Property & Development has begun construction on the second phase of Water’s Edge, a 190,000-square-foot office building that will complete the 6.5-acre project in Playa Vista, Calif. Construction of WE3 is scheduled for completion by the second quarter of 2020. Once completed, Water’s Edge will comprise a total of 450,000 square feet of Class A office space.

“Water’s Edge was an extremely rare opportunity to acquire a trophy asset with a fully-entitled development component in the high-barrier-to-entry West Los Angeles office market,” Andrew Blanchard, managing director at Rockwood Capital, said in a prepared statement. “Our plan is to realize the original vision of Water’s Edge as an iconic three-building office campus in Playa Vista and hold the asset for the long term.” 

The first phase of Water’s Edge was completed in 2002 and comprises two four-story buildings totaling 243,000 square feet. The campus is adjacent to the 350-acre Ballona Wetlands Preserve. The two buildings are currently 89 percent leased to major tenants including Electronic Arts, Doner and Pop Media Group.

Phase II plans

Water’s Edge, Playa Vista, Calif.

The $80 million building will be known as WE3 and is being built on the site of a former surface parking lot and soccer field. The development will feature a ‘floating’ perforated skin surrounding a glass curtain wall, large floor plates ranging up to 40,000 square feet, floor-to-ceiling windows, outdoor public meeting spaces, 15-foot ceiling heights, private balconies and a sky garden. The property will also include the latest refrigerant flow technology for heating and cooling, as well as 661 subterranean, grade and above-ground parking spaces.

The current soccer field will be relocated and replaced with a new artificial turf athletic field, built on top of the new parking structure. The field will anchor the recreational plaza and include amenities such as an Olympic-sized swimming pool, sand volleyball and sports court, as well as a 31,000-square-foot fitness center operated by LA Fitness.

CBRE’s Vice Chairman Jeff Pion, Executive Vice President Blake Mirkin and Senior Vice Presidents Michelle Esquivel-Hart and Richard Ratner are leading the marketing efforts for the property. WE3 is designed by SPF:architects and McCarthy Building Cos. is acting as general contractor.

The joint venture broke ground on the next phase of the office campus a few months after Rockwood purchased Growers Square, a three-building, 195,372-square-foot Class A office project in Walnut Creek.

Images courtesy of Rockwood Capital