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Thursday, Mar 28, 2024

REAL ESTATE COLUMN— Landlord Sees Fitness Center Pumping Up Site’s Appeal

With so little office space available in the hot high-tech corridor along the Ventura (101) Freeway, landlords have no trouble finding tenants. But the Johnston Group figured it wouldn’t hurt to carve out a competitive advantage for its Corporate Center at Malibu Canyon anyway. The company earlier this month installed a fitness center in its 320,000-square-foot complex along Malibu Canyon Road and the Ventura Freeway in Calabasas. “Today, it’s a very competitive environment to attract new employees, so companies are helping to sponsor this,” said Cal Johnston, chairman of Calabasas-based Johnston Group. The 4,500-square-foot fitness center focuses on providing personal training programs. Johnston, which subcontracts operation of the center to One-On-One Fitness, does not intend for the gym to compete with large, national chains, but rather to provide an amenity that tenants can use. Employers will be able to contract for discounts and other programs that they can then pass along to their employees. When it is fully staffed, the center will provide about 10 personal trainers and a variety of memberships customized to each tenant’s needs. Although Johnston does not participate in the revenues of the center, the company did invest a considerable sum in renovating the space, adding such amenities as locker rooms with showers, Johnston said. After researching the fitness center industry, company officials decided that rather than build a gym on the scale of large operators such as Spectrum Club and others, it would design a smaller facility where employees can work out with personal trainers. Corporate Center at Malibu Canyon consists of seven buildings. An eighth building of 140,000 square feet is slated for completion in the fourth quarter of 2001. The park has been almost fully occupied since construction was completed. (The first phase was built in 1985, the second phase in 1990.) Johnston just inked a deal with Physical Therapy Provider Network, which has leased 8,300 square feet of space for its corporate headquarters. On the Block It’s official. Tourney Pointe, a 219,991-square-foot office building in Valencia Corporate Center, has been listed for sale. Arden Realty Inc., which owns the property at 27200 Tourney Road, has hired NAI Capital Commercial to market the class-A building. Tourney Pointe is one of several Valencia facilities that have experienced high vacancy rates as a result of overbuilding in the office sector in that market. The property is about 30 percent occupied. NAI will handle the sale and leasing of the property, which was renovated in 1998. Sylmar Acquisition Local investors acquired a 127,000-square-foot warehouse in Sylmar for $7 million. The purchase, by Desert Sierra Properties, includes about five acres of land at 13291 Ralston Ave. The facility, which includes about 6,000 square feet of office space, is currently about 50 percent occupied by Advanced Bionics. Jerry Scullin and David Hoffberg of Delphi Business Properties represented the buyer. Ross Thomas, also of Delphi, represented the seller, Ralston Investments. User Acquisition Universal Framing Products purchased a 48,500-square-foot industrial building in Sylmar for $2.7 million. The company, which imports picture frame materials, had been leasing the space at 12432 Foothill Blvd. for warehousing, distribution and offices. Richard Kyler and Nigel Stout of Grubb & Ellis Co. represented the seller, the Kapadia Family Trust of Chatsworth. Ross Thomas, a broker with Delphi Business Properties, represented the buyer. Sega Moves Sega GameWorks subleased 15,974 square feet of office space in Glendale. The offices at 600 N. Brand Ave. are leased by Walt Disney Co. Sega will be relocating from 10 Universal City Plaza. Forrest Blake, a broker with Cresa Partners, represented Sega. Toy Story Toy importer Overbreak LLC leased a 5,208-square-foot warehouse in the Celis Industrial Park, bringing that San Fernando complex to full occupancy. Overbreak will relocate its headquarters and distribution facilities from Agoura. Celis Industrial Park, developed by Bernards Bros. Investment Co., consists of five freestanding buildings ranging in size from 3,100 square feet to 5,200 square feet. Jack Mikail, a broker with Westcord Commercial Real Estate Services, represented the landlord. Joe Lopez, also with Westcord, represented Overbreak. News & Notes P & N; Builders Inc. leased a 2,250-square-foot warehouse facility at 14730 Arminta St. in Van Nuys, according to Jason Sweener, a broker with R.J. Feder & Associates NAI Capital Commercial brokers Jack Dwyer and J.P. McDonald were appointed exclusive leasing agents for a 40,000-square-foot R & D; facility in Newbury Park. The complex at 3353 Old Conejo Road will be available for occupancy by the middle of 2001. The owner is CPL Inc. Staff reporter Shelly Garcia can be reached at (818) 710-2731 or by e-mail at [email protected].

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