On behalf of the owner, HFF is marketing for sale Hercules Campus West, the future centerpiece of Google’s Southern California campus. The commercial property for sale is located in the heart of Playa Vista, California, an area known as an integral part of “Silicon Beach.”
Hercules Campus West contains four buildings that are 100 percent leased to Google over a 16-year term with three percent annual rent escalations. Conceived during a prolific period of discovery and innovation under Howard Hughes, the historic buildings include the soaring, voluminous hangars in which Howard Hughes built the Hercules H-4, also known as the “Spruce Goose.” Inside the envelope of these beautiful buildings, Google plans to build new state-of-the-art structures containing a total of 524,759 square feet in three stories and a mezzanine floor. The asset and its investment grade “bond-like” cash flow present a rare opportunity to acquire an iconic, one-of-a-kind property, leased long-term at significantly below market rate to one of the most desirable companies in the world.
Hercules Campus West will be an integral part of Google’s Southern California Campus. Through its YouTube subsidiary, Google already leases the entire Hercules South Campus and a portion of Hercules East Campus. Google purchased approximately 12 acres of land directly north of the hangar buildings for $120 million in December 2014. Collectively, Google owns or leases approximately 32 acres of land with entitlements to potentially build to more than 1.5 million square feet.
Hercules Campus West represents an extremely unique opportunity to acquire the “crown jewel” of the historic buildings that formerly comprised the Hughes Corporation’s headquarters and will be the centerpiece of Google’s Southern California campus. For more information on this property for sale and other commercial properties in Southern California, please contact HFF Director John Crump or Senior Managing Director Michael Leggett.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.