Re Column

By SHELLY GARCIA Staff Reporter Equity Office Properties has retained Cushman Realty Corp. to explore a number of alternatives for its dormant Burbank property, including possible sale of the site, sources said. Officials at Cushman referred calls to Equity, and officials there declined comment on their current plans for the project. But sources close to the developers said Equity wants to explore several different options, including selling the site outright. It’s the latest move in a year-long struggle between Equity and its development partner, J.H. Snyder Co., over construction of a 585,000-square-foot office complex called Media Center on a five-acre site at 3300 W. Olive Ave. It is also another sign that the Burbank office market is in the doldrums. Neither Equity nor Snyder have been willing to discuss the project since Snyder filed a lawsuit against its financial partners in January alleging breach of contract. According to the suit, filed in U.S. District Court in Los Angeles, Equity asked Snyder to discontinue any work on the site. Snyder had originally teamed with Beacon Properties LLC to develop the luxury office complex, but Beacon later merged with Equity. Before Snyder filed the lawsuit, company officials had indicated they wanted to continue with the project, and they were seeking a new financial partner. But the Burbank marketplace has changed since initial plans were made for the six-story center geared for entertainment tenants. Since the slowdown in entertainment-industry office growth last year, there have been few takers for pre-leased space, making it difficult for Snyder to attract another financing partner. ‘The Plant’ rings up a sale Why lease when you can own? A group of investors that includes some owners of Ricon Corp., an industrial tenant at “The Plant” in Panorama City, has acquired the build-to-suit space that Ricon currently occupies. The purchase price was $12 million. The investor group, operating as JADRR LLC, includes Ross Thomas, a principal of Van Nuys-based Delphi Business Properties, which will manage the property. The sellers, Selleck Properties and the Voit Cos., developed the industrial and retail complex in Panorama City, which also includes two other speculative buildings. Ricon, the first tenant to locate at “The Plant,” signed a 10-year lease for a 200,000-square-foot site last year, and the company, with 350 employees, has since moved into the building. Sun Valley deal RPS, a subsidiary of Memphis-based FDX Corp., which provides ground transportation services for small packages, has leased a 97,685-square-foot industrial facility in Sun Valley. The 10-year lease is valued at $6.4 million. RPS will use the space for warehousing and distribution. It is slated to occupy the facility this summer. Mike Davin and Jim Linn at Grubb & Ellis represented the lessor, Boston-based Cabot Industrial Trust. Jeff Kernochan of Fischer Pacific represented the tenant. Industrial building bought DA/PRO Rubber, a manufacturer of rubber parts, has purchased a 33,893-square-foot industrial building in the Valencia Commerce Center for $2.6 million. DA/PRO, which is currently located in Van Nuys, will be relocating to the facility at 28635 N. Braxton Ave. next month. The facility is part of a two-building project under development by Clark Management & Development LLC in Newport Beach. The second building, a 46,338-square-foot facility, is also nearing completion. Jim Linn and Mike Davin of Grubb & Ellis represented the seller. Mike Wood, also at Grubb & Ellis, represented the buyer. Multi-family dwellings sold Brokers at the Encino office of Marcus & Millichap closed four sales on multi-family dwellings in the San Fernando Valley. The brokers sold a 35-unit apartment building at 15127-37 Dickens St. in Sherman Oaks for $2.4 million to PCS Development Inc. The seller was Charles Willard. Clark Manor Apartments, a 28-unit apartment building at 18532 Clark St. in Tarzana, was sold to Sam Deutsch, Helen Deutsch and James Charles O’Keefe for $1.7 million. Brian Crane acquired a building at 21012-26 Victory Blvd. in Woodland Hills for $1.37 million from Victory Boulevard Corp. Marcus & Millichap also brokered the sale of a 41-unit apartment building at 7100 Fulton Ave. in North Hollywood for $1.4 million. The buyers were David and Dorothy Smith. Tony and Mary Hawara were the sellers. Marcus & Millichap’s L.A. office closed five apartment building sales in the Valley. An 86-unit complex at 1910 Yosemite Ave. in Simi Valley was sold to Davlyn Investments for $5.7 million. A 96-unit apartment building at 15116 Parthenia St. in North Hollywood was sold to Hansa Investments for $2.5 million. A 36-unit complex at 10939 Morrison St. in North Hollywood was sold to Shuman Yang for $2.25 million. A 68-unit apartment property on Columbia Avenue in North Hills was sold to Rancho Equity for $1.57 million, and a 33-unit building at 20951 Roscoe Blvd. in Canoga Park was sold to Ben Leed for $1.3 million. Ronald Harris, senior associate at Marcus & Millichap’s L.A. office, represented the principals in all the deals. He was joined by Arthur Arejian, also of the brokerage’s L.A. office, in the Morrison Street sale.