Last season, the San Fernando Valley’s entry took the No. 2 spot in the runaway television reality show hit “American Idol.” Now the production company responsible for the show is set to take a Valley address as well. FreeMantle Media North America Inc. has inked a deal to occupy 41,000-square feet at 4000 W. Alameda Ave. in Burbank. The production company responsible for “American Idol” along with a string of other reality programming is moving from Santa Monica, where it has occupied an 18,000-square-foot space. Craig Jablin, a broker with Studley, said the company conducted an exhaustive search throughout the Valley, Tri-cities and Hollywood before deciding on the Burbank facility. “They were experiencing exponential growth, and they found that the ability to acquire space at rates that made economic sense was better in alternative locations (outside Santa Monica),” Jablin said. “This location worked well for a number of reasons, including accessibility for their workforce. They were also close to a lot of other companies they do business with.” Rents in Santa Monica have been creeping upwards of $4 a square foot, and as of the third quarter, the average asking rate for office space in the Valley was nearer to $2.48 per square foot. FreeMantle is part of an international organization that delivers over 8,500 hours of programming to countries including the U.K., Germany, Australia, Western Europe, Latin America and Asia. It is owned by Bertelsmann AG. “American Idol,” by far the most famous of its U.S. programs, has garnered 22 Emmy nominations since it launched in 2001. Last season, Sherman Oaks resident Katharine McPhee took second place in the competition. The North American division also produces “American Inventor” for ABC, “America’s Got Talent” for NBC, “The Janice Dickinson Modeling Agency” for Oxygen and “Property Ladder” for TLC. Jablin, along with Arlene Sommer at Studley, represented FreeMantle. Douglas Marlow and Nico Vilgiate, with CB Richard Ellis, represented the landlord. Construction Spending Flat Non-residential construction spending rose across the country, but not enough to compensate for the continued downturn in residential construction spending. Commenting on monthly U.S. Census figures, the Associated General Contractors of America noted that residential construction spending dropped another 1.1 percent in September, bringing the total decline in spending for the sector down by 8.2 percent since March. Seasonally adjusted construction spending slipped 3 percent in September, but non-residential construction rose 1.1 percent. The trade group noted that the highest growth categories year to date have been hotels and resorts, which showed a 48 percent spending increase year to date; retail centers, which were up 37 percent for the same period; and hospitals, up 25 percent. “Nearly all of these categories should continue growing over the next year,” said Ken Simonson, chief economist for the AGC. East Valley Deals Three office building sales have recently taken place in the East San Fernando Valley. The largest, a 33,000-square-foot office building in the Burbank Media District at 2727 W. Alameda Ave., was sold for $10.45 million to First Capital Commercial Investment. The seller was a private investor. A 17,000-square-foot office building at 12800 Riverside in Valley Village was sold to Oasis Christian Center for somewhat more than $4 million. Oasis Christian plans to occupy about 10,000 square feet. The remaining space is currently leased by a Fox Television production unit. Another 16,000-square-foot office building at 10911 Riverside in Toluca Lake was sold to a private investor for somewhat more than $3 million. Stacy Vierheilig-Fraser, a broker with Charles Dunn, represented the seller of the W. Alameda property along with Dunn’s Bob Harrison. Vierheilig-Fraser also represented the seller, Granite Falls Holding, in the Valley Village deal and both buyer and seller in the Toluca Lake transaction. First Capital was represented by Mark Miller of Stevenson Real Estate Services. Oasis Christian was represented by April Stefen of Coldwell Banker Commercial. Printer Moves A Canoga Park printing company will relocate to Chatsworth with the just-completed deal to lease 30,700 square feet for its new headquarters. Impress Communications Inc., which is currently based in Canoga Park, will relocate to 9320 Lurline Ave. The five-year lease is valued at $1.6 million. David Hoffberg, a broker with Delphi Business Properties, represented Impress. The landlord, Lainer Investments, represented itself. Senior reporter Shelly Garcia can be reached at (818) 316-3123 or by e-mail at [email protected] .
