Broadcast media company Fox Corporation is currently looking for an investor to buy into its more than 120,000 square foot Fox Sports media campus in Los Angeles, Commercial Observer reports. The property sits right on Los Angeles’ Westside. The media company hopes to lease back about a third of the space, approximately 40,190 square feet for seven years, according to documents Commercial Observer obtained. The rest of the property would stay vacant.
Fox initially acquired the site, which is next to the 405 Freeway and near UCLA’s campus about 24 years ago, per property records. The company bought the property for $50 million at the time. Two years ago, Walt Disney Co. purchased 21st Century Fox and its film and television studios for $71.3 billion. When that transaction occurred, the rest of the assets were spun off and created Fox Corp., which produces a variety of content, such as the Super Bowl, under different divisions like Fox Sports, Fox News and Fox Business. The campus is located near other brand name enterprises such as Google, Amazon, Apple, Facebook and HBO.
It’s currently not clear why Fox is interested in a sale-leaseback for the campus, according to Commercial Observer. The company’s motivation could range from decreasing its office space footprint or leverage an opportunity as broadcasting and modern office space demand grows. The campus is located in an ideal spot, L.A., according to experts due to the ongoing desire for places to create content that also have office and support space. Meanwhile, neighboring areas like Century, West Los Angeles and Santa Monica boast some of the highest asking rents in the U.S.
As an example, Hackman Capital Partners bought into and will eventually assume managerial operations at Raleigh Studios in Hollywood, Commercial Observer reports. The company also bought the Sony Pictures Animation Campus and last month announced a $1.25 billion plan to expand the soundstage and office area at Television City Studios.