Universal Music Group has signed a 146,636-square-foot lease at the LNR Warner Center office building in Woodland Hills.
The deal represents the largest relocation lease by square footage in the San Fernando Valley this year, according to brokerage CBRE Group Inc., which announced the deal.
Universal Music Group will occupy the top four floors of the five-story building at 21301 Burbank Blvd, effective Feb. 1 next year. Financial details were not disclosed, but according to CoStar Group Inc., the asking rate for the building would put the value on the 10-year-lease in the neighborhood of $46 million.
“UMG’s goal was to relocate all their San Fernando Valley employees to one high-quality building with easy access, plentiful amenities and owned by a long-term institutional landlord,” said CBRE Senior Vice President Paul Stockwell, who represented Universal Music.
The music publisher’s offices in Santa Monica will not be impacted by the deal.
The property is owned by Hines, which bought five of the seven buildings in the office park in 2006 for more than $300 million.
The deal also represents the first major office move after the passing of the new Warner Center 2035 Specific Plan in October. Councilman Bob Blumenfield, who represents the area, said the new plan paved the way for major tenants to consider Warner Center.
“With the most up-to-date, cleanest and greenest specific plan in the city, convenient access to freeways and public transit, and a skilled labor force throughout the nearby communities, Warner Center is a truly unique place to do business,” he said in a statement.
Josh Leibowitz and Jeremy Charles of CBRE also represented Universal Music, and Hines was represented by in-house brokers.