Real Estate Column—Syncor Plans Expansion at Warner Corporate Center

On the heels of a business turnaround that has boosted sales and profits markedly, Syncor International Corp. is expanding by more than half at its headquarters in Woodland Hills. The company has just signed a seven-year lease for 35,000 square feet in the Warner Corporate Center, next to the 60,000-square-foot facility it occupies at 6464 Canoga Ave. “It’s directly related to the growth they experienced over the last year,” said Rosey Miller, senior managing director at Julien J. Studley Inc. brokerage, which represented Syncor in the deal. The company chose to expand into a second building rather than move all its offices to a new, larger space because of the amount of time left on its current lease, Miller added. Syncor, a pharmaceuticals manufacturer, several years ago began acquiring medical imaging centers and now operates two distinct divisions. Offices related to both businesses will be interspersed throughout the two buildings, Miller said. “They’re trying to say the culture of the organization is all one, and they’re trying to eliminate any separation by having one division in one building and another in the other,” Miller said. “This way, they have a cross mix, and it has a positive impact on the culture.” Miller said the deal, which took about 60 days to complete, was pushed through quickly because several different companies were competing for the space and rents were increasing, even as negotiations proceeded. “Within a 60-day period, rents went up about a nickel a foot,” said Miller, who would not reveal the value of the lease. Syncor has seen substantial growth in revenues and earnings since it began its program of diversification. For the third quarter ended Sept. 30, the company reported net income nearly doubled to $6.3 million (29 cents per diluted share), compared to $3.2 million (12 cents) in the like period of 1999. Sales for the same period rose to $155.5 million, up from $131.5 million in the third quarter of 1999. Renovated Site Sold Legacy Oaks Corporate Center, a newly renovated, five-story office building in Thousand Oaks, has been sold to Adler Realty Advisors for about $24.5 million. The 156,000-square-foot building, which is nearly fully leased, is home to Homestore.com, Digital Island, Toyota Motor Credit Co., Wiley Electronics and the corporate offices for Baja Fresh Corp. The building, at 225 W. Hillcrest Drive, was owned and occupied by Exxon Corp. until it was purchased by Legacy Partners in 1997. Legacy gutted the facility and rebuilt it. Adler, a private investment company in Woodland Hills, is believed to be actively engaged in several other real estate transactions in the San Fernando Valley. Both buyer and seller were represented by Tom Festa and Kevin Shannon, brokers with Grubb & Ellis Inc. Thousand Oaks Sale A newly constructed, 35,434-square-foot building in Thousand Oaks was sold for $2.9 million. The facility, at 2401 Corporate Center Drive, will be occupied by the buyer, RIMAR Trust. John DeGrinis and Mike Tingus, brokers with Colliers Seeley, represented the developer, Resnick Co. Inc. The buyer was represented by Les Small of Les Small & Associates. Entertaining Deal The Theatrical Television Motion Picture Payment Fund leased 11,500 square feet of space at 12001 Ventura Place in Studio City. The 10-year lease is valued at $4 million. The fund, involved in managing royalty payments, will be moving from Hollywood. Trevor Belden, a broker with Lee & Associates, represented the landlord, American Realty Advisors. David Solomon and Chris Dumont, brokers with CB Richard Ellis Inc., represented the tenant. Tenant Buys in Van Nuys Another industrial building has been sold to a user-owner. Gilbert Rosky and Hossein Tehrani, whose company manufactures foam packaging for commercial use, acquired the 19,725-square-foot industrial facility at 15344 Raymer St. from MHI Investments Inc. The purchase price was not disclosed. David Young and Bill Napier at NAI Capital Commercial represented the buyer. The seller was represented by Mike Sheptenko of TOLD Partners, Inc. Newhall Properties Sold California State Teachers Retirement System acquired four office buildings in the Valencia Town Center for more than $72 million. The properties, totaling 395,000 square feet, include two buildings under construction for Princess Cruises. Fred Cordova, Ryan Smith and Martin Morgenstern at Cushman Investment Services represented the seller. Newhall Land and Farming Co. CalSTRS was represented by Thomas Properties Group. Chatsworth Expansion Luminent Inc. leased 22,200 square feet of industrial space in Chatsworth to expand its offices. The fiber-optics company will expand its offices in an adjacent building. The five-year lease is valued at $990,000. Tim Foutz, a broker with NAI Capital Commercial, represented the landlord, George DeRado. Staff reporter Shelly Garcia can be reached at (818) 676-1750 ext. 14 or by e-mail at [email protected].