Office Tower at The Bloc Flourishes Beyond Market Average
The Ratkovich Company, National Real Estate Advisors (“National”) and Blue Vista Capital Management today announced the signing of seven new leases at The Bloc to further strengthen the emergent design, technology and creative-class office community being cultivated at the project. Fueled by increased market demand, the addition of these new creative-leaning tenants to the Bloc’s roster, coupled with previously announced deals, account for more than 300,000 sq. ft. of newly-leased office space at the property.
The latest group of tenants to call The Bloc home include a technology developer, concierge medical practice and one of the office furniture industry’s most innovative companies.
– KPFF – A multi-office and multi-discipline engineering firm working on ground breaking regional, national and international projects
– PlaceWorks– A consulting firm specializing in a wide range of planning, design, science and engineering, economics, environmental analysis and community outreach disciplines
– Krug Furniture– A leader in the innovative design and manufacturing of office and healthcare furniture solutions
– One Medical – A tech-enabled primary care practice offering same-day appointments and 24/7 virtual care
– MediaAlpha– A developer of real-time technology platforms for the buying and selling of high-intent, vertical-specific search media
– Arc Capital Partners – A boutique real estate operating company that acquires and repositions urban infill properties in the path of Millennial growth
– Mance Media– A global film and television distribution company
These companies will join previously announced tenants including Nordstrom-owned, online retailer HauteLook; integrated design firm DLR Group; Farmers Insurance; commercial real estate service firm, Newmark Grubb Knight Frank; architecture and urban design firm, Studio One Eleven and international communications firm, Golin, who have already leased office space at The Bloc.
According to Chris Penrose, Vice President of CBRE, The Bloc has achieved 13 percent absorption of Class A office space for the total downtown area over the last three quarters, despite having only 4 percent of the total leasable space for the area.
“Our office leasing activity – the majority of which was secured during major construction – is a resounding testament to the community’s excitement for The Bloc and our shared vision for the role it will come to play as the heart of Downtown Los Angeles,” said Wayne Ratkovich, president and CEO of The Ratkovich Company. “With renovations spanning all phases of the project coming to life in short order, we’re proud to offer an authentic LA destination which pulses with the cultural heartbeat of our downtown community, embracing our office community, our tourists and all Angelenos.”
“As The Bloc’s transformation nears completion, the commitment of these tenants reaffirms our collective vision of The Bloc and its central role in the revitalization of downtown Los Angeles,” said Jeffrey Kanne, President and CEO of National. “The innovative organizations making their way to The Bloc and other projects in the area will redefine the neighborhood for decades to come.”
This leasing milestone comes as The Bloc prepares to unveil two new bespoke features with the city’s first direct Metro portal and a classic Southern California rooftop lounge. The 7th Street Metro station portal will connect The Bloc to ultimately 200,000 passengers daily, including tenants, office workers, shoppers, hotel guests, and downtown’s residential community. The rooftop lounge on top of the office tower’s 33rd floor will provide a bird’s eye view of iconic Downtown skyline – available for tenants as well as private events. Both of these new amenities are slated to debut this winter, leading a parade of new retail storefront openings.
Office Tenant Testimonials
“We were attracted to The Bloc because of the location, direct connection to the Metro, the building’s aesthetic and technology upgrades and our neighbors. The Ratkovich Company’s vision for this project has created a fun and energetic environment where people want to come to work,” said Josef Farrar, executive managing director of Newmark. “In fact, our office attendance has increased by over 25 percent due to both our space and being at the property. It’s no surprise to us that others are equally attracted to The Bloc and that the building’s absorption rate is nearly three times better than others in the area.”
“We wanted to relocate a portion of our Los Angeles office to be more centrally located. We were attracted to downtown because of the tremendous renaissance the city is undergoing, and we were sold on The Bloc because of if its own unique transformation and the wonderful amenities and convenience it has to offer our employees and clients,” said Rick Davis, managing principal, KPFF Los Angeles.
“As a company transitioning into the next phase of growth ourselves, in many ways we are mirroring the ‘fresh start’ that is taking place at The Bloc,” said Steve Yi, CEO and co-founder of MediaAlpha. “We’re excited to move into a space that is so intimately connected to the vibrant fabric of the ‘new’ Downtown and look forward to growing alongside the community in our new home.”
About The Bloc
An urbane property at the heart of downtown Los Angeles, The Bloc brings Angelenos together in a vibrant, open-air, truly urban center. Acquired by The Ratkovich Company with partners National Real Estate Advisors and Blue Vista Capital in June 2013, The Bloc inhabits a full city block and is in the final stages of a $180 million renovation to create an experiential activation of unique shops, premier retailers and restaurants serving the newly flagged Sheraton Grand Los Angeles hotel, office tower and downtown neighbors. Originally built in 1973 by architect Charles Luckman, the development will be the single largest mixed-use property in Los Angeles where consumers can work, sleep, shop and eat. It is anchored by a fully renovated Macy’s Flagship store, the completely reimagined Sheraton Grand Los Angeles, and a 722,000 square foot creative-leaning office tower. The Bloc is both LEED certified, WELL certified and known for its connectivity, curating a favored DTLA destination. For more information, please visit www.theblocla.com or follow us at https://twitter.com/TheBlocLA and https://www.instagram.com/theblocla/.
About The Ratkovich Company
The Ratkovich Company is a Los Angeles development company that engages in both new development and the imaginative reuse of existing buildings. The company has completed, or has under development, nearly 18 million square feet of commercial space in Los Angeles County, including The Bloc, a 1.8 million square foot, mixed-use property at the heart of downtown Los Angeles that will become the premier urban retail, office and hospitality destination. The company has also redeveloped The Alhambra, a 45-acre mixed-use urban community in the city of Alhambra, and The Hercules Campus at Playa Vista, a landmark property comprised of 11 historic buildings, including the hangar where Howard Hughes’ legendary Spruce Goose was built. The Hercules Campus is home to Google/YouTube, Konami and 72andSunny. The Ratkovich Company has won numerous awards for its restoration of Los Angeles landmarks, including the art deco Wiltern Theatre and adjacent Pellissier building; the iconic 31-story 5900 Wilshire in Miracle Mile; the Chapman Market and the city of Glendale’s Alex Theatre. The James Oviatt and Fine Arts buildings were also both awarded national landmark status after successful renovations by The Ratkovich Company. For more information, visit http://www.ratkovich.com.
About National Real Estate Advisors
National Real Estate Advisors is a leading investment manager, specializing in build-to-core—developing and owning large-scale, urban commercial and multifamily projects for its institutional client accounts. National constructs investment portfolios of stabilized modern property assets—apartment, office, mixed-use, industrial, data center and hotel—with design features, technological enhancements, and amenities that can drive high tenant demand and create value for investors. The firm is a subsidiary of the National Electrical Benefit Fund. For more information visit, www.natadvisors.com
About Blue Vista
Blue Vista Capital Management, LLC, founded in 2002 and headquartered in Chicago, has raised in excess of $1.1 billion of institutional equity, and currently manages four closed-end funds, two separate accounts and one joint venture relationship with approximately $5.25 billion of assets under management. The firm’s clients include institutional investors, pension plans, insurance companies, the world’s largest university endowment and select family offices and high net worth investors. For more information on the firm, please visit www.bluevistallc.com.