Last year, Skanska broke ground on its first Los Angeles area real estate development - a 46,000-square-foot office building in Beverly Hills. Now, the global construction firm is cooking up plans for a similar project at a location just a half-mile west.
In a $16-million transaction completed earlier this month, Skanska acquired an approximately .35-acre property at 8633 Wilshire Boulevard, which is approved for the construction of a three-story, 43,900-square-foot office building.
The sellers - Isaac Gabai of IAG Capital, Amir Dar of Enzo Equities, and Adam Emrani of Lucent Capital - secured entitlements for the proposed office building from the City of Beverly Hills in 2020.
According to Clare De Briere, an executive vice president with Skanska USA, the company's interest in Beverly Hills is due in part to the pending arrival of Metro's Purple Line extension, which will have a station three blocks west at the intersection of Wilshire Boulevard and La Cienega Avenue.
“Our goal is to build projects that are as sustainable as possible,” said De Briere. “One part of that is transit.”
Beverly Hills is among the most desirable office markets in Los Angeles County, says De Briere, who notes that the city is home to a variety of media, entertainment, and technology companies. The project at 8663 Wilshire could offer a prospective tenant the opportunity to have its own building on Wilshire Boulevard, a potentially attractive alternative to leasing two floors in a tower in Century City.
An architect for the project has not been selected at this point in time, although Skanska has released a request for proposals. The project will be redesigned, but remain within the building envelope approved by the City of Beverly Hills, says De Briere.
Skanska, which has yet to finalize a construction budget for 8633 Wilshire, anticipates breaking ground on the office building in 2022. Completion is tentatively expected in either 2023 or 2024.
In addition to the two Beverly Hills projects, Skanska has also announced plans to build a 13-story office building in the Downtown Arts District. According to De Briere, the company is focusing its Los Angeles County investments along transit corridors, such as Metro’s E Line, as well as along its major commercial boulevards.
The new office buildings on Wilshire Boulevard join several new developments near the Wilshire/La Cienega subway station, including the Gardenhouse condominium complex at 8600 Wilshire Boulevard. The City of Beverly Hills recently launched a new streetscape with the goal of improving pedestrian access to the station.
- 8633 Wilshire Boulevard (Urbanize LA)