The Pacshore team will begin a series of architectural improvements aimed at creating a class-A creative office campus at the Alla Rd. site. The JV plans to invest up to $5 million on the building's architecture, outdoor design, and lifestyle amenities.

Philip Orosco, the managing partner of Pacshore, tells GlobeSt.com that “there's a lot left to do on this asset,” noting that the firm looks to find assets that still have growth potential in submarkets with limited supply. “We're trying to find unique architecture where we can put in a high level of design.”

The campus layout and building history were attractive to Pacshore. “It's an industrial concrete building,” says Orosco. “It went through the beginnings of a creative renovation that put several entertainment companies into the property. A lot of these companies were looking for warehouses to get into, but the market has evolved from dogs and skateboards to more sophisticated credit tenants. They want the refinement of institutional buildings.”

The building is 62% leased, with tenants including the video broadcaster Vivo, digital marketer Visionaire and a school. All tenants will stay through renovations, Orosco says, and are actively involved in advising on the preferred amenities for the building. “A lot of ideas are coming from the tenants, so it's a very organic way of looking at office space. It's driven by the community, less by the investor.”

Maria Stamolis, managing director at Canyon Capital Realty Advisors, says the Playa Vista property is “well-positioned within one of the fastest-growing office submarkets of Los Angeles, and is a great first investment for our new joint venture.”

As previously reported by GlobeSt.com, Canyon Catalyst announced the third and fourth partners in its new program earlier this month.