Larry Flynt, publisher of Hustler magazine, is considering selling his company’s 10-story headquarters building in Beverly Hills, California, according to his spokesman.
Three finalists have put in bids of about $85 million for the building, said a person familiar with the offers. The bidders are Tishman Speyer Properties, owner of New York’s Rockefeller Center; Douglas Emmett Inc., a real estate investment trust based in Santa Monica, California; and Los Angeles-based REIT Kilroy Realty Corp., said the person, who asked not to be identified because the bids are private.
"We’re exploring the possibility of selling the building," Arthur Sando, vice president of communications for Flynt Management Group, said in an email Wednesday. "It’s a valuable asset, whose equity we believe could be used more productively in other areas. At this point, however, no decision has been made."
Flynt’s headquarters, at the intersection of Wilshire and La Cienega boulevards, was built in 1972 for a bank, Great Western Savings. Tenants include the consulates of Brazil and Ecuador, in addition to Flynt’s publishing businesses. The black, oval-shaped tower has a bronze sculpture of actor John Wayne riding a horse in front and "Flynt Productions" in white lettering on the roof. Flynt bought the 208,000-square-foot property in 1984.
The offers of about $400 a square foot for the Flynt building are comparable to prices paid for similar office properties in the area, according to real estate research firm Real Capital Analytics Inc. Tishman Speyer paid $422.5 million, or $424 a square foot, in December for the Wilshire Courtyard complex, and Northwood Properties paid $150.4 million, or $388 a square foot, in October for the Trident Center on Olympic Boulevard, New York-based Real Capital said.
Brad Sevier, principal with Highland Realty Capital Inc., who represents Flynt, declined to comment. Tom Keaney, a Tishman spokesman with Rubenstein Communications Inc., also declined to comment, as did Kilroy Executive Vice President David Simon and Stuart McElhinney, vice president of investor relations at Douglas Emmett.
Tishman Speyer has five Beverly Hills properties, including UTA Plaza, headquarters of Playboy Enterprises Inc. since last year. Douglas Emmett has a portfolio of 14.7 million square feet in 58 office buildings, seven of which are in Beverly Hills, including 8383 Wilshire Blvd., according to the company’s website.
Kilroy owned about 13.2 million rentable square feet of commercial office space as of Dec. 31, according to the company’s year-end filing. In October, Kilroy paid $65 million for the 96,000-square-foot former home of the CBS network’s Los Angeles radio and television operations in Hollywood, and $73 million for a 151,000-square-foot office complex in West Los Angeles.
Hustler’s 10th-floor offices continue to reflect the bordello aesthetic of the 70-year-old Flynt, with thick carpets, heavy drapes, rococo furniture and Tiffany lamps, Bloomberg Businessweek said in June. A receptionist sits behind an over- sized desk with fanned-out copies of Hustler, Hustler’s Taboo and Barely Legal, the magazine said.