Argent buys Capitol building, leases back to label
Argent Ventures has purchased the Capitol Records Tower in Hollywood for $50 million and leased back the property to the EMI-owned label.Argent also acquired the adjacent Gogerty building and a parking lot on Argyle Avenue. EMI sold two facilities in Japan earlier this year as part of its strategy to divest noncore real estate assets. Terms of the lease were not disclosed. David Munns, chairman and CEO of EMI Music North America, said the sale is part of the company’s restructuring efforts announced in April. Proceeds are earmarked for A&R, marketing and the development of the digital business. One of Hollywood’s most recognizable landmarks, the cylindrical Capitol Tower was built in 1956 and has housed Capitol staff and its famed studios ever since. EMI will retain the trademark and rights to the imagery of the Capitol Tower. “Being able to become a stakeholder in Hollywood through the acquisition of such an iconic building, while preserving the operational presence of a landmark company, is exactly how we had hoped to approach the Los Angeles market,” said Michael Gargano, managing director at Argent Ventures, which owns properties in New York and Miami.