91.1 F
San Fernando
Thursday, Mar 28, 2024

Closing Borders Stores Have Location On Their Side

As three local Borders superstores are closing as part of the company’s Chapter 11 bankruptcy reorganization process, real estate professionals say the stores’ ideal locations should help in re-filling the future empty spaces. The three local stores that are set to close are located on Ventura Boulevard in Sherman Oaks, on South Brand Boulevard in Glendale and at the Westfield’s Valencia Town Center shopping mall in Valencia. The company plans to shut down a total of about 200 underperforming stores throughout the nation. They are set to close by the end of April. The Sherman Oaks store is a 24,184-square-foot space, the Glendale store is a 40,000-square-foot space, and the Valencia store is a 24,731-square foot space, according to DJM Realty, which is handling the lease transfers for Borders Group. Stan Gerson, a commercial broker with Beitler Commercial Realty in Sherman Oaks, said the three stores are attractive locations, which should help with finding new tenants for the buildings. “It may just take some time, but I think somebody will go in there – it’s too good of a location,” he said of the Sherman Oaks site, adding that it has heavy pedestrian traffic due to surrounding apartment complexes and restaurants. He also said the Glendale site has proximity to the Americana at Brand and the Glendale Galleria shopping centers. Meanwhile, the Valencia store is actually located in a shopping center. Jim Connor, vice president of DAUM Commercial Real Estate Services in Woodland Hills, also said the stores’ prime locations make a difference. “My overall observations are that Borders spaces are typically well located, and I’m confident that other retailers out there will absorb the space or spaces,” Connor said. “I don’t think they’re going to have that huge of an impact in the overall retail occupancy-vacancy world.” Greg Offsay, senior associate for illi Commercial Real Estate in Encino, said Borders Group additionally has the benefit of a healthier retail leasing market than when other big-box stores like Circuit City went out of business and shut down locations. “There are some other national and regional tenants who do operate in that size range that are active on the market,” he said. “There’s more activity in the marketplace, and there are more tenants looking for larger spaces, some of those tenants who had been sitting on the sidelines and had been looking for space. So, it’s definitely better that this happened now than when Circuit City closed.” DJM Realty said it has already started receiving a lot of attention by potential future tenants for the Borders store locations. “Borders’ real estate has begun to create interest among retailers, supermarkets and non-retailer users,” said Andy Graiser, co-president of DJM Realty. “The available portfolio offers a unique mix of mid and big box locations with long lease terms and strong retail co-tenants.” Office Lease Partners Federal Credit Union signed a three-year renewal lease for 9,482 square feet of office space at Cusumano Plaza, a 65,000-square-foot office property in Burbank. The property is located at 100 N. First St. The space serves as Partners Federal Credit Union’s headquarters. Market asking rents in the area range from about $2.45 to $3.70 per square foot. The building, where Chase Bank is also located, is 100-percent leased. Jones Lang LaSalle’s managing director Jim Lindvall, vice president Dean Hawthorne and southwest region chief operating officer Alan Aufhammer represented Partners Credit Union in the transaction. The property owner, Cusumano Real Estate Group, was represented in-house. “With the Los Angeles office leasing market still in recovery mode, many landlords are being proactive to retain tenants in order to maintain cash flow,” Hawthorne said. “Jones Lang LaSalle was able to negotiate a favorable lease term that provided Partners Federal Union with tremendous savings and flexibility.” Multiple Deals NAI Capital’s Encino office has recently negotiated two deals in the San Fernando Valley. Chuck Carmichael from the Encino branch represented seller William S. Heller Company and buyer Behavioral Systems Southwest in the sale and purchase of a 16,770-square-foot correctional facility and halfway house. The facility is in Van Nuys, situated on 25,735 square feet of land. The property is located at 8141 Orion Ave. In another deal, Steve Weiss from the Encino branch represented lessor Ventura Petit LLC and La Cienega Shopping Center Development LLC in the lease of a 4,000-square-foot retail property in Encino to Panera Bread. The property is located at 16624 Ventura Blvd. The long-term lease is valued at about $2.2 million. The tenant was represented by Tony Pann. See related stories in Real Estate >

Featured Articles

Related Articles