We are pleased to announce that our tenant at 3525 Eastham in Culver City, mobile game developer SGN, just got a $130 million dollar investment for its Asia Expansion. SGN leased 17,000 square feet from us earlier this year. Our brokers earlier brought us several startup companies and were disappointed and displeased when we passed on their credit. Finally, we struck a deal with SGN after reviewing their prospects, profits, momentum, and interviewing others in their space.
As Landlords of creative office space in Los Angeles and San Francisco, we are forced to review the prospects, initial funding, and burn rates of startups and make credit decisions. Unlike the Venture Capitalists who aim to make a killing from one of many small bets, Creative office landlords need to try to hit 100% that the startup tenant will last the term of the lease. Unlike in the dot com boom, venture capitalists now are restraining their startups from posting more than two to twelve months of a security deposit. At a LACRA event this week, Mark Laderman of Tishman Speyer said that Tishman tries to lease only to credit Tech companies. For creative office landlords leasing 7,000 to 20,000 square feet, it is easier said than done.
In any case, we struck it right with SGN. You can read more below. Now, will we get that call for a sublease so they can move to a larger space?