Fresh off a recapitalization of its trophy Los Angeles property, New Jersey-based Normandy Real Estate Partners is looking for some fresh digs to add to its portfolio. In mid- January, Normandy announced it completed a $355-million recapitalization of the largest building in the San Fernando Valley through a joint venture with Morgan Stanley Real Estate Investing. The 36-story Universal City office tower — which bears NBCUniversal’s name — is a jumping off point into Los Angeles, the company said. “It’s a beach head for Normandy in the L.A market …(which) is one that we are looking to be more active in the years to come,” Managing Principal Jeff Gronning said. The company is planning a $1 million upgrade of the lobby and is looking to lure tenants into the 80 percent occupied 774,240-square-foot building. Currently there is a 5-floor block of space totaling about 140,000 square feet on the top floors with expansive views of the Valley, Gronning said. Rent in the building ranges from $3.50 per square foot a month and up depending on the space, he said. Although not its first asset in the area, 10 Universal City Plaza is Normandy’s only current asset in Los Angeles. The East Coast private equity real estate firm, which has a portfolio topping 15 million square feet of commercial space, took ownership of the 10 Universal City Plaza in 2009 after then-owner Broadway Real Estate Partners defaulted on debt Normandy owned, Gronning said. Normandy is eyeing the L.A. market for similar pickups. Gronning said it will look for other assets in the area where owners bought at the peak of the market and have their debt maturing. The recapitalization of Normandy’s Class A tower comes on the heels of NBCUniversal’s decision last year to renew its lease and expand at 10 Universal City Plaza. The media giant, which anchors the tower, inked a 12-year lease for 427,000 square feet. That lease was critical to the recapitalization, Gronning said, especially as its debt was maturing and after the building lost Universal Music Group last year when it decided to relocate to Woodland Hills. According to a CoStar Group market report, Universal Music gave back 160,023 square feet in the building. Normandy remains the majority owner of the property and will continue to manage it for the newly formed joint venture, the company said. Glendale Office Sells for $3.45 Million In yet another SBA-financed owner-user deal, a nearly 14,000-square-foot office building in Glendale has sold for $3.45 million, according to the brokerage firm involved in the deal. Morv Investment LLC bought the building located at 144 N. Glendale Ave from investor Barger Investments LLC, said Sales Associate Kris Hons of Stevenson Real Estate Services. Both the buyer and seller wished to remain anonymous. Hons, who represented both the buyer and seller with vice presidents Randy Stevenson and Steve Baker, said the buyer plans to move his health care business into the building. Hons said the buyer will eventually occupy about 50 percent of the building after several tenants move out within a year. The building, which is 83 percent occupied, will be fully leased once the buyer moves in, Hons said. With many buyers locked out of traditional loans, brokers have seen SBA-financed deals as a bright spot in a tough sale environment with many dealing nearly exclusively in the government backed loans with historically low interest rates. “Financing is just so much better in the down payment arena,” Hons said. The building located near the Glendale Fashion Center was built in 1982. In 2006, it was refurbished with updated common areas and restrooms. Ventura County Department Signs 10-year Lease The Ventura County Department of Child Support Services is moving to Camarillo after it signed a 10-year lease valued at $8.45 million, brokerage firm Lee & Associates-LA North/Ventura Inc. said. The department is consolidating several locations in the city of Ventura into 48,600 square feet of office space at 5171 Verdugo Way. The deal, which required state, federal and county approvals, was one year in the making, the brokerage firm said. Because some counties have contracted with Ventura to provide call center services, the move to Camarillo is a plus because of its more centralized location, Lee & Associates said. Vice President David Kim and Principals John Ochoa and Grant Harris of Lee & Associates represented both the county and the building’s owner Hill Street Partners VI LLC. Kim said the landlord had to restructure the space of four existing tenants in order to create a viable space for the department. Staff Reporter Andrew Khouri can be reached at [email protected]. or at (818) 316-3124
