The former El Segundo headquarters of visual effects studio Rhythm & Hues has been sold for $25 million to real estate developers who plan to upgrade it and turn it into an office campus for creative firms, according to a report by the Los Angeles Times.
Rhythm & Hues was acquired in March in a bankruptcy auction by an affiliate of Hollywood-based Prana Studios. Rhythm & Hues filed for bankruptcy protection in February, just weeks before winning an Academy Award for its work on Life of Pi.
The studio occupied three buildings on six acres on Grand Avenue and Continental Boulevard in El Segundo, an emerging hot spot for companies in such creative businesses as entertainment, media and advertising.
The buyers, New York real estate investment firm Rockwood Capital and Marshall Property & Development, reportedly said they would spend an additional $20 million on improvements to the buildings erected by a defense contractor in the late 1970s and early 1980s.
Plans call for new outdoor common areas, additional parking and opening up the office interiors to provide the exposed high ceilings commonly favored by creative companies.
An affiliate of Rhythm & Hues sold the 200,000-square-foot complex in an off-market transaction, said Beverly Hills real estate advisory firm Lucent Capital, which arranged the sale.