BUILDING—Local Business Groups Find Common Ground – Literally

The Economic Alliance of the San Fernando Valley, The Valley Economic Development Center (VEDC) and a local developer have closed escrow on a $3.1-million office building in Van Nuys that, in addition to being their new home, could ultimately house several of the area’s prominent business associations. The building, at 5121 Van Nuys Blvd., appears likely to become the future digs of at least two of the Alliance’s strategic partners. Both the Valley Industry and Commerce Association (VICA) and the United Chambers of Commerce are finalizing details on rental agreements and aggressively seeking board approval to make the move. Two other Alliance partners the Valley International Trade Association and the San Fernando Valley Conference and Visitors Bureau now operate in the current Alliance headquarters at 15205 Burbank Blvd. in Van Nuys. Those groups will simply slide over to the new building with the owners sometime in March. With four strategic partners operating under one roof, said Bruce Ackerman, Alliance president, the groups will be able to coordinate services and programs. “We already have two affiliates coming over with us because they share space with us now,” said Ackerman. “But we’d love to get VICA and the Chambers in there because that would give us a rare opportunity to work more closely together. They are negotiating with their boards now and we’d be delighted to have them, because the advantage in having these groups come together is we would be able to strengthen our efforts in providing our services to the community.” Richard Leyner, senior vice president of NAI Capital Commercial Real Estate, served as the broker for the Alliance, the VEDC and Encino developer Rickey Gelb of RMG Management Co. The three will operate under the name Valley Corporate Community Center LLC., he said. Each of the three partners put up a third of the $600,000 down payment, said Leyner, who is also chairman of the board for the Chambers. He said the VEDC would likely occupy approximately 12,000 square feet on one floor of the building and the Alliance about 4,000 square feet on another. Gelb said he intends to take between 300 and 400 square feet of space in the new building for his philanthropic association, Rickey & Robbi Charitable Foundation, which secures scholarships for local high schools. He added that bringing the Alliance and the VEDC together “has been an idea of mine for many years.” Less is really more VICA President Bonny Herman said, though the space her group is looking to lease in the new building would be smaller than it now occupies, the shared offices, meeting rooms and kitchen and dining amenities would more than compensate. “I think this would work very well for us because what we are looking for together is to bring synergy to the business community and all of those who benefit from our services,” said Herman. “The quicker we can get things settled, the better for us all.” VICA currently leases approximately 2,000 square feet on Ventura Boulevard in Woodland Hills. Leyner said his organization hopes to share between 1,500 and 2,500 square feet with VICA, and has come close to an agreement on a lease price of $1.65 gross per square foot. The Alliance and the VDEC will pay $1 per square foot, plus approximately 60 cents per square foot for expenses. He added that he does not anticipate that his association board will object to the plan, but cautioned that approval is still pending. “All of these groups have boards they have to get approval from, including ours,” he said. “But we think there’s a lot of synergy by having these groups together under one roof. And I can’t imagine it not being acceptable because the benefit is so immense.” The Chambers market programs and services to the VEDC and coordinates 10 Valley business improvement districts for the Alliance, Leyner said. Roberto Barragan, president of the VEDC, said his association would be vacating its main headquarters about four blocks away. The VEDC also has offices in Pacoima, Ventura and Santa Monica, he said. Barragan said his association also recognizes the benefits of working in close proximity to the Alliance and other business groups. But, quite simply, he said, he needs the space. “We’ve increased the staff here at the main office from 25 to 35 and our programs have expanded over the last year,” said Barragan. The VEDC currently operates in about 9,000 square feet of space and would take up roughly half of 25,000 square feet in the new location, Barragan said. The non-profit organization provides Valley businesses with financing, consulting, training and workforce assistance. The Alliance is looking to secure roughly 4,000 square feet on the building’s second floor, he said. Ackerman said the Alliance has been courting The Valley Leadership Institute, also a strategic partner, but no firm rental offer has been hammered out. Should the Valley Leadership Institute lease space in the new building, that would leave two Alliance partners outstanding: the Small Manufacturer’s Council of California and the Southland Association of Realtors (SAR). Ackerman said SAR is unlikely to join in the move because it already occupies “more space now than they could get in the new building.” As for the Manufacturers Council, that’s another story. “Oh, we wouldn’t turn our heads to the idea of having them join us at all,” said Ackerman.