Office Development Market Reignited in Conejo Valley

Little by little, the office development numbers are creeping up in the Conejo Valley. Some 1.3 million square feet of office space is in the pipeline or under construction in the area, a sum that is making some developers nervous. Although the projects are scattered in different communities Thousand Oaks, Westlake Village and Agoura Hills the markets are close enough in proximity to compete with one another. Much of the new building consists of properties that were entitled some time ago. But because of recent reductions in vacancy rates and the general improvement in the economy, developers are getting back to projects that have been dormant for some time. Also boosting the numbers is the recent decision by the city of Westlake Village to pass on the proposal to construct a Lowe’s-anchored shopping center on land entitled for office property. The office development, which is expected to proceed although a developer is not yet on board, will bring some 376,000 square feet of offices to the market. Added to that, IDS Real Estate Group is developing about 180,000 square feet of office space nearby on Russell Ranch Road in Westlake Village. Several developments are also in varying stages in Thousand Oaks, including a redevelopment of The Arbors with 142,000 square feet of office space and a large, 482,000-square-foot project at Lakeview Canyon and Townsgate roads. Meanwhile, Selleck Development Group is building a 30,000-square-foot office project in Agoura Hills, and several other projects are underway in that city as well. It’s not known when all these projects will come online, but if all or most of them are completed in close proximity it could create a glut of space, at least temporarily. That also has existing office property landlords nervous because the new space would appear at a time when many are anticipating hefty rental rate increases. Those plans could be derailed by the new competition. AvalonBay Opens in Encino Multifamily developer and manager AvalonBay Communities Inc. has opened an Encino office to handle its properties in Los Angeles and Ventura County. Sean Clark and Randall Caraway have been appointed to head the office as senior director of development and senior director of property management respectively. Clark, a 16-year veteran of the real estate industry, joined Alexandria, Va.-based AvalonBay in 2005. Caraway, who has been with the company since 2004, previously managed Hyatt and Marriott resort hotels. “The Encino location provides outstanding access to both Los Angeles proper and Ventura County where we are actively developing and managing communities,” said Larry Scott, senior vice president for AvalonBay. Among the developments currently underway is Avalon Encino, a mixed use project with luxury apartment housing and retail on Ventura Boulevard. Burbank Rehab Set A joint venture between IDS Real Estate Group and Xebec Development Co. has acquired an 80,000-square-foot industrial building in Burbank for $9 million. The new owners plan to invest $30 million to renovate the building, last used by a defense-related firm. It is located at 210 South Victory Boulevard. Bart Pucci, a broker with Grubb & Ellis, represented Xebec and IDS in the deal. He is also marketing the new project along with Grubb’s Brendan Monaghan. Simi Valley Sale A 128,041-square-foot Simi Valley shopping center has sold for $12.5 million. The center, Sinaloa Plaza, was built in 1980 on 6.7 acres of land. It is anchored by Vons. The purchase price amounted to $97.50 per square foot. Alan Kreugar, a broker with Marcus & Millichap, represented the buyer, B/C Sinaloa Plaza LLC. Drew Wetherholt and Kevin Struve, also with Marcus & Millichap, represented the sellers, who were also private investors. Sylmar Sale A 31,828-square-foot industrial building in Sylmar has sold for $3.2 million. The property, which is leased, is currently occupied, and was acquired by a private investor. It is located at 15094 Bledsoe St. Ross Thomas, a broker with Delphi Business Properties, represented the seller. Delphi’s David Hoffberg represented the buyer. Burbank Condo Project Starts Champion Development Group has begun construction on the second phase of the Burbank Entertainment Village, a $90-million project that includes residential, retail and restaurant space with pedestrian features. The project is bounded by Magnolia and San Fernando boulevards and Orange Grove Avenue and First Street. The first phase, developed by AMC Entertainment inc., and completed in 2003, is anchored by a 16-screen AMC Megaplex and includes 30,000 square feet of retail shops and restaurants. The second phase, dubbed The Burbank Collection, will include 118 condominiums and another 40,000 square feet of shops and restaurants. The project is expected to be completed in Spring, 2008.