Real Estate Quarterly

San Fernando Valley So far this year, tenants have vacated 346,800 square feet of office space in the Valley, including 165,500 during the third quarter. Lease rates decreased 3 cents in the quarter to $2.75, according to Colliers International data. Vacancy moved higher to 11.4 percent. Developers have an impressive 343,000 square feet of office under construction. In the industrial market, 698,300 square feet were leased or sold during the third quarter with vacancy steady at 0.8 percent. Industrial lease rates fell 10 cents to 93 cents a square foot. Construction crews are working to add 144,400 square feet of industrial space to the market. Main Events A joint venture of Rockwood Capital and Artisan Realty Partners bought the office tower at 5200 Lankershim Blvd. in North Hollywood for $91.3 million. The property has 175,000 square feet. Decron Properties purchased Alura, a 250-unit multifamily property in Woodland Hills for $79 million. The property occupies 7 acres at 6333 Canoga Ave. The 76,496-square-foot former headquarters of ValleyCrest Landscape Cos. in Calabasas sold for $24 million to Los Angeles real estate firm 4M Investment Corp. The new owner plans to convert the 17-acre property at 24151 Ventura Blvd. into a multi-tenant office building. Optimus Properties in Los Angeles paid $22 million for Tarzana Tower, a 10-story multi-tenant office and medical building at 18321 Ventura Blvd. in Tarzana. IMT Capital bought 5 acres of land at 4815-4827 Sepulveda Blvd. in Sherman Oaks for $58 million. The developer plans to build Il Villagio Toscano with 325 residential units and 44,000 square feet of retail space at the location. u The former site of the Exotic Euro Cars dealership and showroom at 22223 Ventura Blvd. in Woodland Hills sold for $5.8 million. The 19,970-square-foot commercial structure is currently vacant. The 20,557-square-foot office building at 22141 Ventura Blvd. in Woodland Hills sold for $5.9 million. The buyer was a home health-care agency, which will occupy a portion of the building. A portfolio consisting of Park Balboa and Balboa Palms, two Granada Hills apartment complexes at 16914 and 16950 Blackhawk Street, respectively, sold for more than $12 million. The two properties have a combined 57 units and 44,721 square feet. ••• Burbank and Glendale Glendale office vacancy tempered to 16.7 percent compared to 17.6 percent in the second quarter, while asking rents moved higher to $3.15 a square foot. Glendale tenants took 37,800 square feet off the office market. In Burbank, tenants gave back 21,400 square feet while rent rates were flat at $3.59, the highest in the Valley region. Both markets have zero office product under construction. Main Events Pebblebrook Hotel Trust, a REIT based in Maryland, sold the Hotel Amarano Burbank for $72.9 million to an unnamed buyer. The 132-room hotel is located at 322 N. Pass Ave. Brentwood-based GPI Cos. has sold the retail portion of the Burbank Collection at 250 N. First St. for $25.9 million to an unnamed buyer. The complex has 39,400 square feet of retail space at ground level, as well as 118 condominiums on upper floors. A private investor paid $7 million for the 20,150-square-foot creative office building called West Toluca Lake Plaza at 10999 Riverside Drive in Toluca Lake. The three-story building is occupied mostly by entertainment tenants. Vancouver-based Onni Group has proposed an 857-room hotel on both sides of the office tower at 611 Brand Blvd. in Glendale. Onni purchased the office tower in 2017. Lexington Apartments, a 29-unit complex at 1111 E. Lexington Drive in Glendale, sold for $7.9 million to Carvajal Family Trust. The seller was San Diego Zoo Global. Pasadena developer Adept has approvals to convert the Glendale office building at 520 N. Central Ave. into 53 condominiums. Adept will build another 45 condos at the rear of the property at 521 N. Orange St. ••• Conejo Valley Office vacancy held firm at 14.5 percent, the same as last quarter and little changed from the 14.0 percent of a year ago. However, asking rates climbed 14 cents to $2.62 a square foot despite zero net absorption during the quarter. Main Events Marin Corporate Center at 501-509 Marin St. in Thousand Oaks sold for $9.3 million. Buyer Marin Simgo, a private investor, plans to reposition the 50,234-square-foot campus for medical and office tenants. It was 50 percent occupied at time of sale. Big Brand Tire and Service plans to relocate its headquarters from Camarillo to 14401 Princeton Ave. in Moorpark after the auto repair company bought the building for $10.2 million. Majestic Asset Management in Van Nuys sold the remaining two of four buildings at Tech Park @ Canwood in Agoura Hills for $17.7 million. The pair of structures total about 80,390 square feet. The buildings are at 5126 and 5142 Clareton Drive. ••• Santa Clarita Valley Vacancy loosened to 13.8 percent during the quarter compared to 12.3 percent in the previous quarter. Office tenants took 20,400 square feet off the market, according to Colliers International data, while asking rents held steady at $2.63. Main Events New York-based Blackstone Group paid $54.3 million to buy the apartment complex at 23645 Meadow Ridge Drive in Santa Clarita. TruAmerica Multifamily Inc. sold the 176-unit property. The 10,260-square-foot industrial building at 24700 Trevino Drive in Valencia sold to Interstate Management Group of Bakersfield for $12.5 million. Santa Clarita Studios Corp. bought the 28,850-square-foot industrial building at 27771 Avenue Hopkins in Valencia for $4.3 million. The 16,773-square-foot building at 21515 Centre Pointe Parkway in Valencia sold for $3.4 million. ••• Antelope Valley Just 22,000 square feet of industrial space were sold or leased during the quarter, as vacancy ticked up a notch to 2.6 percent. Asking rents for industrial space decreased 3 cents to 65 cents a square foot, the lowest in the Valley region, according to data from Colliers International. Main Events The Sunset Ridge apartment complex at 43436 16th St. West in Lancaster sold to Afton Properties in Los Angeles for $132 million. The property has 800 units. Pacific Affordable Housing Corp. was the seller. Gennady “Gary” Landa, a Beverly Hills oral surgeon, bought the office building at 1669 W. Avenue J in Lancaster for $2.5 million to open a dental office on the premises. Jeffrey Glaser in Woodland Hills was the seller. Palmdale Glass & Mirror bought its location from owner Hal Monheim for $1.6 million in an owner-occupied deal. The 83,200-square-foot industrial service building is at 608 E. Avenue P in Palmdale.