Real Estate Quarterly – Quarter 1 2018

San Fernando Valley Office lease rates gained a nickel to $2.51 in the Valley. Tenants gave back 89,900 square feet even as construction crews work to add another 218,300 square feet of new inventory, according to Colliers International. In the industrial market, vacancy fell to a mere 1 percent with no construction projects in the pipeline. Main Events Warner Atrium, a 128,762-square-foot office building in Woodland Hills, sold for nearly $28 million to Sandstone Properties Inc. Unilev Capital Corp. sold the property at 6400 Canoga Ave. in a 1031 exchange. • SPI Holdings purchased the 324-unit Warner Villa apartment complex at 5807 Topanga Canyon Blvd. in Woodland Hills for $96.5 million. The 13-building development sits on 9 acres. • Developer BLDG Partners purchased 52 live-work units at Universal Lofts in Studio City for $39 million. Located across from Universal Studios at 3450 Cahuenga Blvd., the project includes 12 buildings with dual zoning so resident can live and work onsite. • JB Matteson Inc. sold Cielo Apartments, a 119-unit property at 9733 Topanga Canyon Blvd. in Chatsworth, for $45 million. The seller was a private multifamily investment firm. • The 5,100-square foot office complex at 15450 Ventura Blvd. in Sherman Oaks sold for $3.8 million to a private trust. The seller was an entity named 15450 Ventura Blvd. LLC. • Universe Holdings paid $22.7 million for a multifamily portfolio with 123 units. Van Nuys properties include 6935 Woodman Ave., 6461 Kester Ave., 5840 Hazeltine Ave., 14129 and 14133 Gilmore St. and 14108 Gilmore St. Other properties include 8924 Van Nuys Blvd. and 8132 Langdon Ave. in Panorama City and 6502 Vineland Ave. in North Hollywood. Universe plans $3.3 million in upgrades. • A Van Nuys icehouse at 14243 Bessemer St. sold for $2.9 million to Nm Glcr LP. The 14,353-square-foot structure has two ice-producing tenants. • Genesis Capital LLC signed a lease to double its current office space to 20,575 square feet at 15303 Ventura Blvd. in Sherman Oaks. Financial terms were not disclosed. Genesis will relocate from its present headquarters in Woodland Hills. • Moving company Stratton and Sons acquired a Chatsworth industrial property at 20500 Prairie St. for $6.6 million. The company intends to build a 47,000-square-foot facility while seller Tavco Inc. will lease back an existing 30,000-square-foot building. Burbank and Glendale Tenants vacated Burbank and Glendale in a major way, leaving behind 102,900 and 113,000 square feet of open space, respectively. Nevertheless, rents in Burbank gained 2 cents to $3.46, the most expensive rate among Valley submarkets. In Glendale, lease rates stayed flat $2.78. Main Events • A fund managed by CBRE Global Investors Ltd. paid $122 million for 801 N. Brand Blvd. and 700 N. Central Ave. in Glendale. The two-building office portfolio has nearly 878,000 square feet. • Intercontinental Real Estate purchased the Connexion Burbank complex at 303 N. Glenoaks Blvd. in Burbank for about $125 million. Lincoln Property Co. sold the 180,180-square-foot. • Champion Real Estate Co. paid $20 million for Windsor Real Apartments, a 62,211-square-foot complex at 1377 E. Windsor Road, and $13.6 million for the Princess Louise Apartments, a 50,725-square-foot property at 720 N. Louise St., both in Glendale. • Post-production company Eikon Group signed a 10-year lease for 20,000 square feet in Burbank Media District-North at 2777 N. Ontario St. Financial terms were not disclosed. • The site of a fast-food restaurant with only 885 square feet at 2320 W. Victory Blvd. in Burbank sold for $1.1 million. • Formosa Group, a post-production sound company, and amusement park design company Rethink Leisure & Entertainment have signed leases in the Hanhai Civic Plaza at 250 E. Olive Ave. in Burbank. Formosa took 8,834 square feet and Rethink 354 square feet. Financial terms were not disclosed. • Hall Structured Finance will finance the construction of the Aloft hotel in Glendale for $17.6 million. Opening is expected in May 2019. Conejo Valley Vacancy dropped to 15 percent as tenants absorbed 80,900 square feet. Lease rates edged up 3 cents to $2.33, according to Colliers International. In the industrial market, 414,000 square feet are under construction in the Conejo Valley. Main Events • Cusumano Real Estate Group in Burbank sold Conejo Corporate Campus, the former Thousand Oaks headquarters of Amgen Inc., for $22.9 million. The buyer was a joint venture between Harbor Associates LLC and Blue Vista Capital Management. The property has two office buildings with 99,239 square feet and 100,439 square feet. • Townsgate Technology Center, a 60,478-square-foot office building at 2475 Townsgate Road in Westlake Village, sold for $12 million. • Erringer Plaza at 1716 Erringer Road in Simi Valley sold for $4.3 to a private investor. Tustin-based Simi Executive Center sold the 31,106-square-foot office and retail property. Santa Clarita Valley The submarket continues to ratchet down vacancy to 12.7 percent with office tenants taking 8,700 square feet during a quarter. Office rents held steady at $2.55 A square foot. Industrial vacancy jumped to 6.3 percent – a huge change compared to a year ago when it stood at just 1.4 percent. Main Events • Chinese investment firm Gemdale USA bought the 130-unit Madison apartments at 24555 Town Center Drive for $45.9 million. •Harbor Associates LLC and Goldman Sachs Asset Management Private Real Estate acquired the Commons at Valencia Gateway for $33.1 million. The office building is located at 25124 Springfield Court. • The 45,429-square-foot retail center at 23300-23314 Valencia Blvd. sold for $9.8 million. • Valencia Entertainment Center at 23460 Cinema Drive in Santa Clarita sold for $9.2 million. The 32,343-square-foot retail property was 100 percent occupied at the time of the sale. Antelope Valley Industrial vacancy inched lower to 1.1 percent, down from 1.2 percent the previous quarter. Industrial rents held steady at 55 cents, according to Colliers International. A solid 44,501 square feet were sold or leased during the quarter. In response to low vacancy, developers have 225,800 square feet of new space under construction. Office seekers have plenty of options with vacancy at 17.8 percent, the highest of any submarket in the Valley region. Main Events • Lancaster Village II, a 13,463-square-foot retail center at 1137 W. Avenue I in Lancaster, sold for $1 million. • The 22,875-square-foot manufacturing building at 811 Columbia Way in Lancaster sold for $1.7 million to Payam Bahari. The seller was Green World LLC. • A couple paid $750,000 for Carmen Plaza, a 7,500-square-foot office complex at 38424 8th St. E. in Palmdale.