Lexington Pays Nearly $18M For Tech Center Building

LOS ANGELES-Lexington Corporate Properties Trust of New York has acquired an 83,252-sf office building at 2706 Media Center Drive that is 100% leased and is occupied by Playboy Enterprises and Sony Electronics for $17.9 million in a transaction brokered by Mark Perry of the Sherman Oaks office of CB Richard Ellis. Records indicate the seller was San Francisco-based AMB Property Corp.The new Lexington asset is one of seven buildings at the Media Tech Center, a 400,000-sf campus at 2701-2714 Media Center Drive that was developed by AMB and Foster City-based Legacy Partners at Taylor Yard, a former Union Pacific railroad maintenance facility north of downtown Los Angeles. The 2706 Media Center Drive building occupies 4.4 acres and is a single-story office/flex building. Playboy Enterprises Inc. leases 63,049 sf of it in a lease that runs through October 2012 and Sony Electronics Inc. leases 20,203 sf through August 2009. At the time Playboy signed for its space in 2002, GlobeSt.com reported the value of the lease at $14 million. The Taylor Yard project generated considerable publicity during its development and lease-up because the property, just south of the Glendale-Los Angeles border at the Glendale Freeway at San Fernando Road, was one of relatively few in-fill sites available for such development near downtown L.A. It also generated much interest because it was considered an example of an adaptive re-use of a former industrial property for a more up-to-date purpose.Lexington owns and manages office, industrial and retail properties net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area.