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Global Crossing's Winnick puts glitzy offices up for sale

Global Crossing Ltd Chairman Gary Winnick has put the bankrupt company's former US headquarters, an historic Beverly Hills, California, complex known as "The White House," up for sale.

Winnick's Pacific Capital Group Inc investment firm hired Cushman & Wakefield Inc to find a buyer, the property broker's chairman, John Cushman, said. The property has been renamed North Crescent Plaza since its grand opening less than two years ago as Global Crossing Plaza.

The sales effort comes a day after Global Crossing, based in Hamilton, Bermuda, filed a plan to emerge from one of the largest-ever bankruptcies after amassing US$12.4 billion in debt building a 161,000km fiber-optic network. Winnick's personal fortune has dwindled with Global Crossing's troubles, falling to US$550 million according to Forbes magazine, from a peak of US$4.5 billion.

"The Global Crossing building is a magnificent piece of real estate," said Paul Stockwell, corporate managing director at broker Julien J. Studley. "I'm not sure this is the most advantageous time to put a really expensive building on the market." The complex may fetch US$60 million, Rick Hamilton, one of the brokers at Cushman who is handling the sale, said. Stockwell said it will be competing for investors along with several other office buildings in the city that are available for purchase or lease, including one owned by Dreamworks SKG co-founder David Geffen.

"Global Crossing no longer is in the building," said Scott Tagliarino, a spokesman for Win-nick. "The opportunity is there to sell the building and the opportunity came to him in terms of an interest level from entertainment companies, medical companies and possibly a hotel site."

Winnick's Pacific Capital bought the neo-Georgian complex for about US$40 million almost four years ago. The property includes two buildings with 1,152m2 of office space, a cafeteria and gymnasium, facing a landscaped plaza with fountains and a reflecting pool entered through iron antique gates from Scotland.

Global Crossing, which moved most of its executive offices to Madison, New Jersey, had paid more than US$400,000 a month in rent. A Pacific Capital unit made a legal claim in July against Global Crossing for US$496,000 in lapsed rent for April, even though the company gave up the lease on April 2.

The northernmost building was designed by architect Paul Revere Williams for Music Corporation of America in 1938. Its whitewashed brick exterior, curving front driveway and oval-shaped office earned its nickname, "The White House." MCA sold the property to shipbuilder Litton Industries, which added the second building.

Winnick also renovated the complex, including his oval office, once occupied by Hollywood agent Julius Stein of MCA. He set a large-screen television into one African rosewood wall and hung paintings by Cy Twombley and Georges Braque on another.

Winnick hired decorator Alberto Pinto of Paris, whose clients have included French President Jacques Chirac, to help in the renovation.
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