Messaging app Snapchat’s presence in a Venice building is helping to drive up the property’s listing price. The building on Ocean Front Walk near Park Avenue where Snapchat recently signed a five-year lease has been listed for roughly 10 times what it sold for 13 years ago, reports the Los Angeles Business Journal.
The building at 723 Ocean Front Walk sold in 2004 for $2.1 million. Now, it’s listed for $20 million.
And this is before the tech company has even moved into the 6,952-square-foot building. Its lease kicks in next month.
“If anything on Ocean Front Walk is going to fetch an astronomical asking price, this would be it,” said a rep from real estate firm Marcus & Millchap, who cited the tech tenant as a solid reason to ask top dollar for the property.
Snap, Inc., the parent company of Snapchat, holds a collection of leases across Venice and at the Santa Monica Airport. A five-year lease here suggests the company is not thinking of leaving the neighborhood any time soon.
The concentration of tech companies in Venice has also been credited and blamed for the sometimes hard-to-believe prices for residential real estate in the neighborhood, with modest homes listing for and and sometimes receiving exorbitant prices.