Advertising agency Kastner & Partners will relocate from Santa Monica to Playa Vista, where a former industrial neighborhood north of Jefferson Boulevard has become home to several ad firms.
Kastner & Partners will join other prominent agencies such as Deutsch, TBWA Chiat Day, OMD Worldwide, KDA Group, 72 and Sunny and TVGla that have relocated to what is being referred to as "ad agency row," said real estate broker Travis Landrum of Industry Partners.
"Ad agencies require space that is collaborative, organic and flexible, which is difficult to find in traditional office buildings," Landrum said.
"Since advertising can be an ebb-and-flow business, the space must be able to easily accommodate changes in staffing that occur as projects come and go."
A collection of such space can be found in post-World War II industrial buildings in a two-mile stretch north of Jefferson between Lincoln Boulevard and the 405 Freeway, he said.
Kastner & Partners signed a 10-year lease for about 15,000 square feet at 5340 Alla Road in a transaction estimated to be valued at $6.5 million. The property is one of two converted 1970s-era industrial buildings that comprise the Annex, a six-acre campus with 120,000 square feet of creative office space.
The Annex, which is controlled by landlord PacShore Partners, is now 80% leased, Industry Partners said. Other tenants include Ignition Creative, Visionaire Group, VEVO, and DTrain.
Kastner & Partners was founded in 1985 and made a name for itself by launching the Red Bull energy drink. Kastner, which also has offices in Frankfurt, Germany; London; Madrid; Milan, Italy; and St. Louis, is expected to move to Playa Vista early next year.