There's a new part owner of Hollywood's cylindrical Capitol Records Building, one of the most recognizable structures in Los Angeles and a fixture of the city's music industry.
Universal Music Group, one of the biggest names in the music business, bought a 50% stake in the owner of the 13-story tower at 1750 Vine St., according to an emailed statement by the company and public records obtained by CoStar News. Universal Music Group also entered into a 20-year lease for the property, where the company's Capitol Studios and label Capitol Records are housed.
It's just the latest chapter in a storied musical history for a building known for its roof-top beacon that's been blinking out "Hollywood" in Morse code since its construction in 1956.
Inside, songs have been recorded over the decades by some of the biggest American singing stars, including Nat King Cole, Frank Sinatra, Steve Miller Band, Linda Ronstadt, Tanya Tucker, Willie Nelson, Britney Spears, Mariah Carey and Queen Latifah.
The company's representative said "UMG will also have the opportunity to acquire the property in full at the end of the lease.” Universal Music Group didn't disclose more financial details about the deal.
The Capitol Records Building sold in 2006 for $50 million as part of a sale-leaseback deal with seller EMI Group, which later became part of Universal Music Group, according to the Los Angeles Times. The buyer at the time was New York-based developer Argent Ventures, which on its website lists New York-based Millennium Partners as its joint venture partner on the property.
The property's current owner is New York-based CPH 1750 North Vine LLC, an entity related to Millennium Partners. The entity owns three parcels at 1750-1770 N. Vine St., which includes the Capitol Records Building, according to public records.
A mixed-use development, called Hollywood Center, has been in the works for years at and around the Capitol Records Building site.
The Capitol Records Building, also known as Capitol Records Tower, was designed by architect Louis Naidorf. Construction started in 1955 after EMI Group bought Capitol Records, and was finished a year later.
Universal Music Group's corporate headquarters are based in the Netherlands and its operational headquarters are in Santa Monica, California.
Outside of the Capitol Records Building, Universal Music Group leases roughly 429,000 square feet in greater Los Angeles, according to CoStar data.