San Fernando Valley
The San Fernando Valley’s office vacancy rate was 21.1% in the fourth quarter, up from 20.6% in the previous quarter. No new office was under construction and the market experienced a net absorption of negative 75,470 square feet. Asking rents were $2.65 a square foot during the fourth quarter.
Main Events
Summerset Village, a 280-unit luxury multifamily community located in the foothills of the Santa Susana Mountains in Chatsworth, sold for $107 million. Institutional Property Advisors, a division of Calabasas-based Marcus & Millichap, represented the seller and procured the institutional buyer in the sale. The names of the seller and buyer were not disclosed.
- In an expansion plan unveiled in November, Sun Hill Properties Inc., operator of Hilton Universal City Hotel, announced plans to build a 395-key hotel directly adjacent to the existing hotel. The new expansion plan includes a rooftop restaurant and spa. Construction is expected to be completed in 2026.
Santa Clarita Valley
In Santa Clarita, office vacancy rates remained fairly steady, slightly rising from 23.6% in the previous quarter to 23.8% in the fourth quarter. Asking rents dipped 9 cents quarter over quarter to $2.64 a square foot.
Main Events
Four medical office condominiums were sold in Valencia for a combined purchase price of $2.8 million. Located at 27335 Tourney Rd., the condos belong to a Class A, three-story medical office condominium complex called Tourney Place. The four medical offices each span approximately 5,600 square feet on the ground floor of the property’s sixth building. Spectrum Commercial Real Estate Inc. represented the buyer in the sale.
- Corona del Mar-based Hanley Investment Group arranged the sale of a new Bliss Car Wash in Valencia for $3.72 million. The arrangement, part of a 1031 Exchange, marks Hanley Investment Group’s 80th car wash sale in the last 48 months.
Antelope Valley
Antelope Valley’s industrial market remained strong, with 139,853 square feet under construction during the quarter. Vacancy rates rose slightly to 2.7%, up from 2.4% the previous quarter. Roughly 118,000 square feet sold or leased during the quarter.
Main Events
A new-construction, single-tenant Smart & Final Extra! sold at the Antelope Valley Plaza. Hanley Investment Group Real Estate Advisors’ Sean Cox, Bill Asher, Alexander Moore and Kevin Fryman represented the seller, PacWest Management Inc., in partnership with Evergreen Development Co. The buyer was not disclosed.
- A 24,000-square-foot, single-tenant property occupied by dd’s Discounts at the Antelope Valley Plaza sold. Hanley Investment Group Real Estate Advisors’ Sean Cox, Bill Asher, Alexander Moore and Kevin Fryman represented the seller, PacWest Management Inc. The buyer was not disclosed.
Conejo Valley
The Conejo Valley experienced a 21.5% vacancy rate during the fourth quarter, up from 21.1% in the previous quarter. Negative 27,000 square feet was absorbed during the quarter, bringing the total net absorption year to date to negative 16,880. No new office product was under construction.
Main Events
Ventura County purchased a vacant 99,000-square-foot commercial office building in Thousand Oaks, which it plans to use as its fire department administrative headquarters. The low-rise building, known as 2400 Conejo Spectrum, sold for $14.9 million. Newmark Group Inc. represented the undisclosed seller.
- Two multifamily complexes – Los Robles Apartments, a 253-unit asset built in 1972, and The Retreat at Thousand Oaks, a 146-unit property constructed in 1966 – traded hands in Thousand Oaks for a combined $171 million. Institutional Property Advisors, a division of Calabasas-based Marcus & Millichap brokered the portfolio sale, representing the seller, Decron Properties, and procured the buyer, FPA Multifamily.
- Calabasas-based NewMark Merrill Cos. Inc. acquired a 172,000-square-foot retail shopping center in Thousand Oaks. The company purchased the asset, which it renamed The Collection at Janss Marketplace, to complement the existing Janss Marketplace. Seritage Retail Group was the seller.
- A Class A, 750,000-square-foot, multi-building industrial project known as 101 Logistics Center in Oxnard became fully entitled and ready for leasing. The developer of the property, Stream Realty Partners, purchased the 41-acre site in June. Stream hired Newmark Group Inc. to lease the property.
- A freestanding industrial structure spanning approximately 46,000 square feet sold for $13.7 million to Michele Bolour of Apollo Asset Management. The seller was Steve Sannett, a private investor. The facility came equipped with 7,540 square feet of dedicated office space. Lee & Associates managed the sale.
- A 22,000-square-foot industrial building located at 5456 Endeavor Ct. Sold for $6.7 million to Hugh Cassar, the owner of Kretek International, a tobacco-distribution company. Lee & Associates managed the sale.
Burbank and Glendale
While Burbank had no new office construction, Glendale was busy at work, with 186,308 square feet under construction. In Burbank, the vacancy was 19.7%, up from 17.3% the previous quarter. In Glendale, the vacancy was 29.1%, up from 28.3% the previous quarter. Negative 184,891 square feet were absorbed in Burbank, compared with negative 55,314 square feet absorbed in Glendale. Burbank remained on top with higher asking rates, coming in at more than a dollar more expensive per square foot than Glendale.
Main Events
Beverly Hills-based real estate investment trust Kennedy Wilson sold an office property located at 400 and 450 N Brand Blvd. in Glendale, for $60 million, or $136 per square foot. Kennedy Wilson had previously acquired the 441,000-square-foot complex from Beacon Capital Partners for $144 million in 2017, resulting in a 60% price decrease.
- The City of Burbank purchased a Class C, 21,700-square-foot industrial asset located at 904-906 Lake St. for $8.2 million. The seller was Forgiato Inc. The deal came out to $377 per square foot. Lee & Associates brokered the deal.
RT Specialty, a wholesale distributor of specialty insurance products and services, renewed its 14,400-square-foot lease at Tower Burbank, a 460-foot office tower located at 3900 W. Alameda Avenue. RT Specialty has been a tenant since 2016. CBRE Group Inc. brokered the lease.