Yahoo Search Lands Large Santa Monica Property
By Gathering Marbet
August 31 -- Yahoo Inc. is usurping Colorado Center so thoroughly that the space is going through an identity change -- literally.
By November 2007 Yahoo will add 150,000 square feet vacated by Metro-Goldwyn-Meyer Inc, along with another 64,000 square feet soon to be available, to the 256,000 square feet the internet giant already occupies, according to press reports.
All together Yahoo will lay claim to 43 percent of the Center, which spans 1.1million square feet, according to a recent report in the Los Angeles Business Journal.
And to sweeten the deal, the owners, Equity Office Properties and pension fund TIAA-CREF, will allow the Centerís name to be changed to the Yahoo Center.
According to inside sources, Equity Office Properties and pension fund TIAA-CREF stand to make close to a cool $80 million on the deal, over a ten year lease agreement
All parties involved declined to comment to the press about the transaction.
Earlier this year, Yahoo relocated its headquarters from Sunnyvale, CA to the Colorado Center, reportedly to claim a place in the sun nearer to the entertainment industry.
This decision has turned out to be a financial windfall for the Equity Office/TIAA-CREF partnership, which was looking to fill several vacancies on the Santa Monica property, including a space that MGM leased for its home video division.
The City collects $1.3 million of the $18.6 million in business license taxes from Internet and entertainment related company accounts, according to City finance officials.
Besides Yahoo, Colorado Avenue is home to other entertainment
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