Real Estate Quarterly

San Fernando Valley During the first half of the year, tenants vacated 181,300 square feet of office space, mostly in the central section of the Valley. Meanwhile, lease rates increased 4 cents in the second quarter to $2.78, according to Colliers International data. Vacancy moved higher to 10.6 percent. In the industrial market, 758,000 square feet were leased or sold during the second quarter with vacancy at 0.8 percent. Industrial lease rates inched higher to $1.03 a square foot compared to $1.01 in the first quarter. Developers have 144,400 square feet of industrial under construction in the Valley market. Main Events New York Life Real Estate Investors bought the office building at 5161 Lankershim Blvd. in North Hollywood for $103 million. It has 205,286 square feet plus a 703-space parking garage. uBarings Real Estate Advisers sold the San Fernando Business Center to Rexford Industrial Realty Inc. for $118 million. The five-building complex totaling 591,660 square feet at 635 8th St. and was 88 percent leased. National retailer Harbor Freight Tools USA Inc. signed a 228,990-square-foot, 15-year lease for Corporate Center Calabasas at 26565-26709 Agoura Road in Calabasas. Harbor Freight will relocate from 26541 Agoura Road in Calabasas. uBLDG Partners sold eight office condominiums at 3450 Cahuenga Blvd. in Studio City for a combined $10.4 million. A private investor bought six units, with the others sold to owner-users. 4M Investment Corp. bought 9631 De Soto Ave. in Chatsworth for $23.1 million. uFilm production company NEP Group Inc. leased the 108,162-square-foot Van Nuys Distribution Center 2 at 7850 Ruffner Ave. Financial terms were not disclosed. The 38,994-square-foot office building at 12925 Riverside Drive in Sherman Oaks sold for $11.6 million to Post Group Production Suites. Electro Rent Corp. sold its warehouse at 15385-15389 Oxnard St. in Van Nuys to Rexford for $16.8 million.uLion Real Estate Group bought Park Terrace Apartments at 6425 Reseda Blvd. in Reseda for nearly $24 million. ••• Burbank and Glendale Glendale office vacancy ratcheted up to 17.6 percent compared to 16.8 percent in the first quarter, but asking rents also moved higher to $3.08 a square foot. Glendale tenants exited 47,700 square feet of office space. In Burbank, tenants gave back 52,300 square feet but rents increased a cent to $3.59, the highest in the Valley region. Burbank lease rates have increased 8 percent in the last year. Main Events An individual investor bought 2212 Kenmere Ave., an industrial building in Burbank with 25,644 square feet, for $8.3 million. u Rodeway Inn & Suites Pacific Coast Highway in Harbor City bought the half-acre retail property at 1633 Victory Blvd. in Glendale for $3.65 million with plans to build a 64-room hotel. The 7,400-square-foot industrial building at 7668 San Fernando Road in Burbank – located across the street from Hollywood Burbank Airport and the Amtrak station – sold for $2.27 million. u Raintree Partners purchased seven multifamily properties in Glendale for $79 million. The properties have a total 231 units located at 1435 Stanley Ave. (80 units); 138 N. Everett St. (eight units); 1458-1462 E. Wilson Ave. (14 units); 1133 Justin Ave. (54 units); 120 W. Chestnut St. (33 units); 1140 N. Columbus Ave. (22 units); and 314-320 W. Burchett St. (20 units). Hollywood Camera sold the building it occupies at 3100 N. Damon Way in Burbank to an investor in Houston, Texas for $3.4 million. Trojan Storage in Los Angeles paid $9 million for 620 W. Elk Ave. in Glendale where it plans to demolish the existing structure and build a 220,000-square-foot self-storage facility. The 19-unit apartment property at 714 E. Acacia Ave. in Glendale sold for $7.6 million. ••• Conejo Valley Tenants took 8,000 square feet of office space off the market during the second quarter; vacancy moved slightly lower to 14.5 percent. Rental rates dropped 2 cents to $2.48 a square foot. In the industrial sector, vacancy grew to 2.3 percent. Main Events 2380 Conejo Spectrum St., an industrial building with nearly 100,000 square feet, was leased to two tenants – Sage Publishing and Atara Biotherapeutics Inc. – on separte floors. Financial terms were not disclosed. Majestic Asset Management and Johnston Group paid nearly $18.3 million for Westlake Plaza Centre 2, an 84,098-square-foot office building at 2829 Townsgate Road in Westlake Village. The office complex at 28348 Roadside Drive in Agoura Hills sold for $4.75 million. The former Farmers Insurance headquarters site with 12.8 acres at 3039-3041 Cochran St. in Simi Valley sold for $18.5 million. ••• Santa Clarita Valley Vacancy tightened to 12.3 percent as office tenants took 21,300 square feet off the market, according to Colliers International. Asking rents continued to climb to $2.63, compared to $2.37 at the end of 2018, a gain of nearly 11 percent so far this year. Industrial vacancy fell to 1.9 percent. Main Events Valencia Pipe Co. Inc. leased 170,990 square feet at 28305 Livingston Ave. inside the Vista Business Park in Valencia for $10.1 million. The lease runs until October 2024. Hutensky Capital Partners bought the 95,384-squqre-foot shopping center at 16530-16688 Soledad Canyon Road in Santa Clarita for $37.8 million. Rexford Industrial Realty Inc. paid $5.5 million for the industrial building at 25413 Rye Canyon Road in Valencia. The office building at 21704 Golden Triangle Road in Santa Clarita sold for $5 million to Santa Clarita R&E Holdings. ••• Antelope Valley Asking rents for industrial space increased 4 cents to 68 cents a square foot, still the lowest in the Valley region, according to data from Colliers International. Industrial vacancy in the High Desert jumped to 2.5 percent. In the office market, vacancy declined to 3.1 percent compared to 9.3 percent. Main Events Coachella Green LLC bought the warehouse totaling 74,800 square feet at 43511 70th St. in Lancaster for $10 million. An investor paid $6 million for two multi-tenant pad sites at 1721 E. Avenue J and 44421 20th St. East in the Walmart Supercenter in Lancaster. Both pads were 100 percent leased. The 9,984-square-foot shopping center at 5037 W. Avenue N in Quartz Hill sold to Crescent Dixon Plaza II in Simi Valley for $5 million. Aurora Village Apartments, a low-income senior housing project with 132 units at 43862 15th St. West in Lancaster, sold for $8.65 million.