No one’s going to be happy about this unless they live along Marmion Way:
Let’s plug in to Hip-dom!
Already a growing haven for artists, fashionistas, foodies and techies, the Arts District is about to get a major influx of song and dance.
In a shift that reflects the increasing importance of infusing the music industry with tech culture, Warner Music Group plans to move hundreds of employees from Burbank and the Westside into a renovated former auto plant in the downtown neighborhood.
The Arts District has witnessed a flood of new residences, shops and restaurants — and the development of a nascent start-up scene. But the move of the company’s West Coast headquarters into the historic Ford Factory building is a watershed moment, said Carl Muhlstein, international director at real estate brokerage Jones Lang LaSalle.
“After years of courting tech and media, downtown has finally snagged a whopper,” said Muhlstein, who was not involved in the deal. “Downtown has been rehearsing for this part for close to 10 years, and Warner Music took them up on it.”
Yuuck. Developers + Art + Culture = Developers.
The world’s third-largest music company plans to build offices, recording studios, performance spaces, a cantina and artists’ lounges. It envisions a large outdoor space leading to a 750-vehicle parking garage. Warner Music said it would spend $40 million to $50 million to complete the structure to its liking, the regulatory filing said.
Warner Music Chief Executive Steve Cooper told employees by email Friday that the Arts District “is a burgeoning art, fashion and food scene that’s a magnet for businesses, entrepreneurs, and creatives.”
Remember those old Iowa state tests in school where you had to pick what object didn’t belong? One of those words is a definite outlier. Guess which one?
The consolidation of the firm’s West Coast operations follows a similar move two years ago in New York, where the company has its official headquarters. The firm, whose talent roster includes Beyonce, Coldplay, Flo Rida and Sheryl Crow, found that consolidating offices on Broadway nears Times Square boosted productivity and creativity, according to the source familiar with the deal.
How do you measure “creativity”? And what do those NY employees do now that’s different, run over to the Schwarzman during lunch? The prudence and fortitude’s gone up a lot over there as well we hear. When the L Train closes down for a couple of years for repair their Brooklyn employees will also be loving the new move for sure.
Like others in the music industry, Warner Music has been hit with a decline in music downloads as consumers have shifted to streaming services. The privately held company, controlled by billionaire investor Len Blavatnik’s Access Industries, recorded just a $33-million profit in the nine months ended June 30, but that was better than its $65-million loss for the same period last year.
In moving to the Arts District, the company decided on a neighborhood undergoing huge changes. Real estate firm CBRE estimates 2 million square feet of office space is under construction in the district, already a fast-growing hub for media and tech that has lured businesses such as venture capital firm Greycroft Partners and crafts-selling start-up Seedling.
Transportation start-up Hyperloop One, which is seeking to build high-speed transit tubes worldwide, has an expanding campus of more than 55,000 square feet a few blocks from the Ford building.
Maybe Goethe and Schelling will locate next. We heard Mozart had to pass.
Other development envisioned in coming years could make the area more of a residential community.
Last month, Irvine-based SunCal announced plans to erect two 58-story condo and apartment towers at 6th and Alameda streets. The mixed-used project, also featuring hotels and creative offices, would dominate the skyline in the largely low-rise area.
Art for all, all for art.