PLAYA VISTA, CA—DivcoWest and Maguire Investments have formed a joint venture that will own Water's Edge, a two-building, 260,000-square-foot office property in Playa Vista, CA, developed by Maguire Investments. The joint venture also plans to develop a third creative office building on the campus. The value of the joint venture transaction is undisclosed, but Robert F. Maguire III, chairman and CEO of Maguire Investments, tells GlobeSt.com, “it is very substantial” and “is one of the largest transactions on the Westside this year.”

“The timing was perfect,” says Maguire. “DivcoWest had been trying to get into a good project on the Westside, and they couldn't find anything. So, we conjured up the joint venture concept, selling them a majority interest in the first two buildings and forming a joint venture on the third building. The timing was just perfect, and we are very enthused to be working with them.”

The joint venture hopes to break ground on the third building in mid-2015. It will be a true creative office property with 14-foot ceilings, oversized windows, polished concrete floors and ample amenities. Entitlements are already in place, and Maguire is now finalizing the design and going through the permitting process. “We are really itching to break ground because the market is really hot, and we can't move fast enough. Once completed it will be one of the most exciting creative campuses in the country,” Maguire says. “It is basically what the tech industry is looking for, and we expect it to do really well. Our timing is really exceptional because the buildings currently underway are essentially rehabs, so we will be the first new building in the market.”

The Playa Vista office market is experiencing extremely high demand, especially for quality creative office. “Playa Vista is really a hot market, primarily because West L.A. is substantially leased. For a big tenant, the only place they can find space on the Westside is in Playa Vista. That has really created an extraordinary market in Playa Vista.”