Complex housing Playboy selling for $210 million?
Los Angeles • A three-building Beverly Hills office complex that includes the headquarters of Playboy Enterprises is being sold for $210 million, according to two people with knowledge of the agreement.
Tishman Speyer agreed to sell the property to New York- based Rockefeller Group International in a deal scheduled to close by Aug. 1, said the people, who asked not to be identified because the transaction is private. Live Nation Entertainment Inc. and United Talent Agency also have offices at the complex, which is fully leased.
Two buildings at the site are former headquarters of Hilton Worldwide Holdings, which moved to McLean, Va. in 2009 after its acquisition by Blackstone Group. Tishman Speyer, based in New York, bought those properties from Blackstone in 2011, and added a third building housing Live Nation that year.
The deal with Rockefeller is being done at a 4.5 percent capitalization rate, one of the people with knowledge of the matter said. Cap rates, a measure of investment yield, are net operating income divided by purchase price, so they fall as values rise. The average cap rate for Los Angeles office buildings was 6.4 percent as of May, according to research firm Real Capital Analytics.
Suzi Halpin, a spokeswoman for Tishman Speyer with Rubenstein Communications, and Dwayne Doherty, a Rockefeller spokesman, both declined to comment on the deal.