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Friday, Mar 29, 2024

A Dose of Reality for North Hollywood Office Property

PCCP’s investment into up-grading a four-story office building, located at 12020 Chandler Blvd. in North Hollywood – northeast of the Chandler and Laurel Canyon intersection – appears to be paying off. The company, formerly known as Pacific Coast Capital Partners, sunk millions of dollars into painting the building and parking structure, installing new bathrooms, adding windows, upgrading landscaping, and refurbishing the lobby, elevator cabs and fire life safety systems. The 126,151 square foot office building was ready for occupancy in April 2009. It’s already 50 percent leased and seems to be finding a niche with entertainment-type companies. To date, PCCP has inked at least two major deals for the property. At the beginning of the year, ASI Entertainment signed a 10-year, $6.5 million lease for 20,916 square feet of space. At the time of the transaction, the media research firm planned on moving into the first floor space during the third quarter of 2009. In early December, Pilgrim Films & Television locked in a five-year lease for 36,877 square feet of space. The estimated value of the deal is $5.5 million. CB Richard Ellis represented PCCP in both transactions. Steve Salas and Joe King of Madison Partners represented Pilgrim. The recent five-year lease encompasses the entire second floor of the building and a portion of the ground floor. The move is a consolidation and relocation of Pilgrim’s North Hollywood and Sherman Oaks offices. The firm produces reality shows such as American Chopper, Dirty Jobs and Ghost Hunters. Steven Salas said many factors helped make the deal happen. The recent renovation and quality of PCCP’s ownership were key selling points. Location-wise, it sits right between Pilgrim’s two other offices. And Pilgrim took advantage of the fact that it’s a tenant’s market. Salas said multiple concessions were made, including some free rent, parking concessions and a notable tenant improvement allowance. Pilgrim also locked-in at a relatively low long-term rate. The transaction is another plus for the eastern San Fernando Valley office sub-market. In the third quarter of 2009, the area had a direct vacancy rate of 12.8 percent, one of the lowest in the greater Valley region. Net absorption was also one of the best in the Valley, clocking in at -5,300 square feet. Baxter Expanding? Baxter Healthcare Corp. renewed and expanded its lease at 1 Baxter Way in Westlake Village. The deal was for a total of 230,621 square feet for a nine-year term. Jones Lang LaSalle represented Baxter and John Prabhu and Mickey Isen of Kennedy Wilson represented the landlord. The value of the lease was not disclosed. The Oaks at Westlake, where the company is located, contains about 355,000 square feet of Class A office space. It’s currently 97 percent leased and boasts other major tenants such as State Farm Mutual Automobile Company and Verizon California, Inc. The big question: Is Baxter planning a significant expansion? A spokesperson for the company verified the transaction and said the expanded lease includes less than 20 percent of extra space. The company, which is one of the largest tenants in the complex, has incrementally grown its employment levels over the years. But she said there’s “nothing to read into” about the renewal. In my opinion, it at least seems like a good sign that a large tenant and provider of quality jobs for this region is committing to be here for another decade. Santa Clarita, Antelope Valleys If the Bank of Santa Clarita is looking for visibility, it’s likely to get it at its new digs. The company closed escrow on a 15,240 square foot office building at 26350 Citrus Street in Santa Clarita, located at the intersection of Citrus and Magic Mountain Parkway and across from the regional mall. The building will eventually be the bank’s headquarters. Jim Ebanks, Lauren Ebanks and Andrew Starnes of Realty Advisory Group represented the bank in the sale. And Doug Cole of NAI Capital represented the seller. Terms of the transaction were not disclosed. Bank of Santa Clarita is planning an extensive renovation of the interior to convert it for use as administrative and executive offices, combined with a new branch. The expansion is subject to regulatory approval. The bank currently has three branches scattered throughout the Santa Clarita Valley. Also up north, Susan Champion of Lee & Associates recently transacted the first sale in the Meridian Professional Center located near Palmdale Regional Medical Center. Hoffman Hospice of the Valley acquired a 9,542 square foot building at 655 W. Avenue Q in Palmdale. Terms of the transaction were not disclosed. But it’s the first sale at the center, which was completed in late 2008. The non-profit is in the process of converting all of its facilities to owned versus leased properties. Champion represented the buyer and Zeke Patterson of Colliers International represented the seller, MPCCA Palmdale, LLC. Staff Reporter Eric Billingsley can be reached at (818) 316-3124 or at [email protected].

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