Farmers and CIM Group Enter Into Sale Leaseback of Wilshire Campus
Farmers Enters Next Phase of Multiyear Transition to New Headquarters, Continuing Commitment to Los Angeles
Los Angeles, Calif. (April 21, 2014) – Farmers Insurance, the largest insurer based in Los Angeles, and CIM Group today announced that they have entered into a sale and partial lease-back of the 10-acre Wilshire Boulevard campus. For Farmers, the sale of its current Home Office complex in the Park Mile District of Los Angeles marks the next phase of its transition to a new company headquarters at Warner Center. In conjunction with the sale, Farmers executed a lease agreement to maintain a significant presence on Wilshire Boulevard as its transition plan continues.
“We are excited about our progress in transitioning our employees to the newer, more modern Farmers Plaza at Warner Center --- a move that will offer a more contemporary, engaging work environment for our employees and also keep us headquartered in the city of Los Angeles,” said Jeff Dailey, Chief Executive Officer of Farmers Insurance. “As previously announced, our transition will be a phased and methodical process over several years. Today’s announcement is a key milestone in that process.”
“Farmers was founded in Los Angeles and with our move to Warner Center, our historic tie and commitment to Los Angeles and Southern California will remain intact and will continue to be part of our proud heritage,” Dailey said. “We are committed to this city and its future.”
The phased transition to Farmers Plaza at Warner Center began last year with the move of several employees into the new location. Later this year through early 2019, additional employees will be shifted to the office at Warner Center; a total of over 1,500 employees will make this transition. Eventually, all employees located at the current Home Office campus will be moved.
“This is an unparalleled opportunity to acquire a substantial property on Wilshire Boulevard in this desirable neighborhood,” said Shaul Kuba, Founding Principal of CIM. “We are pleased to have worked with Farmers Insurance on this transaction, and that it will continue as a tenant at the property until it has completed its transition, while maintaining a strong presence in Los Angeles in both locations.” The current Wilshire Campus is a centrally located urban office campus, featuring large landscaped plazas and open space creating a park-like setting in the heart of the bustling Wilshire Corridor. The Wilshire Campus is comprised of four full city blocks on Wilshire Boulevard bounded by Keniston Avenue to the west and Muirfield Road to the east in the prestigious Park Mile district in Los Angeles. It is located one-half mile from the Metro Purple Line subway station under construction at Wilshire and La Brea Boulevards. The campus is also adjacent to some of Los Angeles’ most prominent residential neighborhoods including Hancock Park and Windsor Square, and offers easy access to the rich retail and restaurant environments in the neighboring Miracle Mile district, Larchmont Village, and the greater Wilshire Corridor.
CIM is an investor in urban communities throughout North America and identified the nearby Wilshire Corridor/Park Mile area as a district that meets the firm’s strategic investment guidelines. It is proximate to numerous CIM office, retail, studio, hotel and multifamily residential investments in other of its qualified communities such as Hollywood, West Hollywood, Koreatown, Midtown and Downtown Los Angeles.
About CIM Group
CIM Group is a leading real estate and infrastructure investment firm that since 1994 has systematically and successfully invested in dynamic and densely populated communities throughout North America. CIM Group draws on its experienced team of real estate, investment and finance professionals to identify and pursue investment opportunities in three primary strategic categories: repositioning and development projects in established and emerging urban areas; well-positioned operating properties in transitional and established districts; and infrastructure. CIM manages three distinct portfolios, including opportunistic, stabilized and infrastructure funds, each of which are diversified by geography and type of property within that risk profile. Headquartered in Los Angeles, CIM maintains regional offices in New York, the San Francisco Bay Area and Bethesda, Maryland. For more information, please visit www.cimgroup.com.