Earlier this month, Kilroy Realty Corp. shelled out $186 million to purchase the Blackwelder office complex in Culver City. Now, thanks to the company's quarterly earnings call, we know why.
The 6.9-acre campus, located at 3101-3243 S. La Cienega Boulevard, is currently improved with 19 one- and two-story office buildings comprising 158,000 square feet of rentable space. The property is currently fully-leased, with in-place tenants paying approximately 35 percent below market rates.
Although specifics were not listed on the call, Kilroy Realty Chief Executive Officer John Kilroy indicated that the company intends to expand upon Blackwelder's current offerings.
"We're...at the early stages of looking at what we might be able to redevelop the project to over time," said Kilroy. "It would be many, many times the square footage that's there now."
Culver City has been one of the main beneficiaries of the recent expansion of content production in Southern California, with Amazon, Apple, and HBO recently announcing plans to occupy large campuses currently under development in the city.
The Blackwelder site, located a short distance north of Metro's La Cienega/Jefferson Station, will be an immediate neighbor of Carmel Partners' 11-acre Cumulus mixed-use complex. That project, now under construction, includes more than 1,200 apartments and a retail component anchored by a Whole Foods Market.
Kilroy Realty's recent Los Angeles area investments have focused on Hollywood, where the company's recent projects include the Viacom-anchored Columbia Square development and the Academy on Vine - now fully leased by Netflix.
- Culver City (Urbanize LA)