$130 million for Murdock Plaza
Murdock Plaza, a 17-story red-brick office building in Westwood that boasts VIP tenants such as ex-Mayor Richard Riordan and philanthropist Eli Broad, has been acquired for $130 million.
The tower at the intersection of Wilshire and Westwood boulevards was completed in 1981 by billionaire investor and developer David H. Murdock, who still occupies a suite there.
The building also houses the exclusive Regency Club, which is one of the first private clubs in Los Angeles to admit women as members. When Murdock opened the dark-paneled Regency for dining and business meetings, the Jonathon and California clubs were still men-only.
“Murdock Plaza has a reputation and prestige that is difficult to match in the marketplace,” said Marc Rendard of Cushman & Wakefield, the real estate brokerage that represented New York-based seller Sumitomo Life Realty Inc. in the deal. “There was interest in buying it from all over the country and abroad.”
Rendard did not disclose the name of the buyer, but industry newsletter Real Estate Alert identified him as Kambiz Hekmat. Businessman Hekmat developed and owns Center West, a 22-story high-rise across Wilshire from Murdock Plaza that he completed in 1990.
Hekmat did not respond to requests for comment, but Rendard predicted the new owner “would elevate the quality of the building.”
Although the property has a glamorous history and prominent tenant roster, it has been outshined in recent years by newer offices in the area, and observers say it could be upgraded to more modern standards.
“That building has the opportunity to be fully enhanced to its original position as one of the premier properties in the market,” said real estate broker Jerry Porter of Cresa Partners, who was not involved in the transaction. “I think their timing is excellent.”
When Murdock opened the $20-million building at 10900 Wilshire Blvd. as his headquarters, it was considered top drawer with its high ceilings, brick facade and bay windows. Local wags joked that a blocky building next door looked like “the box Murdock Plaza came in.”
Murdock later sold it to movie and music mogul Frederick “Ted” Field. Field gave up control of the property to his partner Sumitomo in 1991. Like previous owners, Hekmat technically has a leasehold interest in the property because the underlying land is owned by two local private trusts.
Field, a Marshall Field department store heir and prolific Democratic Party fundraiser, still has offices in Murdock Plaza, as does actress Kathy Ireland and cable television giant Marc Nathanson, Rendard said.
One of Field’s music industry partners in the 1990s was Death Row Records, which was previously headquartered in Murdock Plaza and once brought rappers and their entourages into the otherwise buttoned-down corporate spaces.
Murdock, 84, has a net worth of more than $4 billion, according to Forbes magazine, and is a substantial Republican Party contributor and fundraiser. He built his fortune as a real estate investor and leveraged buyout specialist.
Murdock Plaza is now 94% leased, Rendard said, with many tenants paying rents well below the neighborhood average. At the end of the second quarter, Westwood rents averaged $4.35 per square foot per month, according to Cushman & Wakefield, up from $3.14 the previous year.
