Being able to offer large blocks of space in a tight office market in Los Angeles is a key to success for developer Tishman Speyer, The Wall Street Journal reports.
The paper said Tishman acquired the empty, two-building former Beverly Hills, Calif., headquarters of Hilton Hotels Corp. for "about $65 million."
The Los Angeles Times reported that Tishman then undertook a $30 million renovation of the buildings at 9336 and 9346 Civic Center Drive.
So far, the reports say, Playboy Enterprises Inc. has leased 45,000 square feet to consolidate its California offices, and 120,000 square feet to United Talent Agency.
The Times said Playboy had hired Wolcott Architecture/Interiors of Culver City to design the new offices.
What is making the purchase work for Tishman, the Journal said, is that the empty buildings make large blocks of space available in a popular submarket.
