It's the latest real estate mash-up to debut in greater Los Angeles: a combination coworking space and social club.
Two commercial property operators are hoping demand for flexible offices and members-only recreation spots will help their new offices stand out in a region that's still trying to bring workers back to their desks after the pandemic.
Arc Beverly has opened a 65,000-square-foot private work and social club in Beverly Hills; and a separate yet similar concept, The Lighthouse, aims to bring content creators in the nation's entertainment capital under one roof following its redevelopment of a historic post office blocks from the beach in Venice.
Both projects come online as hybrid work is still reshaping how the nation’s employers use offices, with some operators betting that amenities including rooftop bars or resort-style gyms can draw in workers who no longer want traditional workplace cubicles under long-term lease agreements.
The Arc Beverly is courting executives and others to work at the space where memberships start at $300 per month through a culinary program, events and other perks. The Lighthouse, meanwhile, is a 31,282-square-foot property built for digital creators and production teams with soundproof recording and filming rooms, editing bays, podcast areas, a cafe, event spaces and a 50-person theater.
“Membership clubs are experiencing a real renaissance across the country, and yet there is still a void in Los Angeles specifically,” said a statement from Amanda Potter, founder and creative director at Good City Studio, the operator of Arc Beverly. It’s the first concept of its kind for Good City Studio, founded by Equinox Hotels veterans David Gutstadt and Potter.
Los Angeles has become a testing ground for private clubs, from the celebrity-heavy scene at SoHo House in West Hollywood to the phone-free culture at San Vicente Bungalows in Beverly Grove. Such clubs are popping up across the country as "third spaces" where folks can gather with others who share their politics, social status or worldview, depending on the club.
Not every concept pans out. NeueHouse, once a celebrity-backed coworking club, filed for Chapter 7 bankruptcy in October and closed 150,000 square feet of space across Los Angeles and New York. Convene Hospitality Group, an upscale event hosting and flexible workspace provider, bought NeueHouse in a deal that includes its intellectual property and operations of the NeueHouse Madison Square location in Manhattan.
A campus for creators
The real estate professionals involved in the two newest coworking concepts in Los Angeles say flexible workspaces with in-demand perks will draw in workers, as employers across the country compete for high-end office spaces.
“As the nature of work changes and trends shift, we’re seeing more interest in the creation of these specialized hospitality campuses,” said Ron Senso, superintendent at JTM Construction Group, which served as construction manager on The Lighthouse in Venice. The company supported developer Allied Commercial in the project.
More firms have embraced hybrid work in recent years, with the Los Angeles office vacancy rate at a historic high of 16.1%, above the nation’s average of 14%, according to CoStar data.
Backers of The Lighthouse say professionals in the content creation sector want project-based space rather than permanent offices. The flexibility of the property — an adaptive reuse of the 1939 Venice Post Office — is designed for professionals whose work “may not justify the need for a full-time office lease.”
The Venice outpost at 1601 Main St. is not the only concept for The Lighthouse. It is nearing the opening date for a similar location in Brooklyn, New York, and has plans for a London club to open in 2026.
The Lighthouse is part of marketing and advertising creative network Whalar Group.
Hospitality vibe
Good City Studio has more than 20 lifestyle projects open or in development nationwide; Arc Beverly is slated to be the first in a planned network of premium community clubs in major U.S. cities.
Arc Beverly at 9800 Wilshire Blvd. includes collaborative work areas, private offices, conference rooms, screening rooms and two rooftop terraces. Chef Victor Totoris is overseeing the club’s culinary program, drawing from his Argentine heritage and relationships with purveyors including The Cheese Store of Beverly Hills.
Workspaces were designed by BA Collective and wHY Architecture.
Todd Johnson, CEO of the Beverly Hills Chamber of Commerce, said the club adds to the city’s civic and business community by giving members a place “to get work done, meet others, and build real connections.”
The property and an adjoining parking deck sold in August to Corinthia Hotels International in a deal with backing from investors including Kuwait-based Action Real Estate Co. and The Gores Group.