Interpublic Inks 145,000-SF Pacific Design Lease

WEST HOLLYWOOD, CA-Advertising and marketing giant Interpublic Group has signed one of the year’s largest office leases, a long-term commitment for 145,000 sf at the Pacific Design center, owned by New York developer and investor Charles S. Cohen. Terms of the deal were undisclosed, but industry sources believe it’s about a $40 million transaction.Interpublic will house seven of its companies on the three floors and a portion of the fifth floor of the 450,000-sf Green Building at the Pacific Design Center, which Cohen has renovated and repositioned after acquiring the property at the intersection of Melrose Avenue and San Vincente Boulevard in 1999. Cohen notes that the five-year repositioning plan has included a $30-million capital improvement program that has filled all but approximately 30,000 sf of office space at the Green Building. Interpublic was represented in the lease by Scott M. Panzer, Steven D. Kolsky and Mike Arnold of Newmark & Co. The landlord was represented by Cohen and David B. Nevins, SVP of Cohen Brothers Realty Corp.The firms moving to the PDC are Bragman Nyman Cafarell, an entertainment and lifestyle marketing and public relations firm; Weber Shandwick Worldwide/Rogers & Cowan, part of one of the world’s largest public relations firms; Jack Morton Worldwide marketing agency; PMK/HBH entertainment public relations agency; Momentum Worldwide events, promotional marketing and sponsorships agency; ID Media direct response media company; and Magna Global, the media negotiation and programming arm of Interpublic. The move is expected to begin in August as Interpublic relocates the seven companies from other locations in the L.A. area.Designed by architect Cesar Pelli, the 14-acre Pacific Design Center opened in September 1975. It consists primarily of two buildings containing 1.2 million sf of showroom and office space and a developable site on which another 400,000 sf can be built. The larger of its two buildings, dubbed the “Blue Whale” because of its color and size, contains approximately 750,000 sf of space, leased mostly to showroom users. The six-story structure connects to the Green Building, which opened in 1988. The design center also includes two restaurants, the Museum of Contemporary Art (MOCA), a 200-seat conference center, a private fitness center for tenants and five location venues for private events.