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International Lease Finance Signed as MGM Tower Tenant

March 06, 2001|BRAD BERTON | SPECIAL TO THE TIMES

The developer of Metro-Goldwyn-Mayer's future Century City headquarters has signed up another anchor-caliber tenant: aircraft leasing giant International Lease Finance Corp.

ILFC, which has been based at SunAmerica Center across Constellation Boulevard from the planned MGM Tower since the early 1990s, has agreed to occupy the 35-story MGM building's top six floors--about 127,000 square feet--for 12 years.

Executives of ILFC and the MGM Tower's developer, Chicago-based JMB Realty Corp., announced the deal at Monday's groundbreaking ceremony. No financial details were disclosed, but Century City office brokers estimate ILFC's rental commitment totals $100 million or more.

MGM previously agreed to occupy 17 lower floors through a 15-year transaction considered the biggest office lease in Los Angeles history. The MGM and ILFC deals represent commitments for nearly 75% of the 700,000-square-foot tower's space.

Office broker Gary Weiss predicted MGM Tower will be entirely leased well before the end of the year. ILFC's rent probably averages more than $65 per square foot over its lease term, estimated Weiss, a CSFB Realty Corp. managing director.

ILFC, an American International Group affiliate, occupies about 54,000 square feet on three noncontiguous floors at the SunAmerica tower, said Mark McCaslin, the McCaslin Co. principal who handles leasing for both the SunAmerica and MGM towers. Its current home couldn't accommodate its expansion needs, he said.

John McRoskey of CB Richard Ellis negotiated on ILFC's behalf. The aircraft firm and MGM plan to occupy the building upon completion in spring 2003.

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