2002: Year In Review The Valley’s Biggest Real Estate Deals of the Past Year A weak stock market and low interest rates conspired to make 2002 a banner year for commercial property sales. Deals valued at hundreds of millions of dollars brought real estate investment trusts and other national players to the San Fernando Valley, some for the first time. Among them, Wells Real Estate Funds, a Norcross, Ga.-based investor with $1.9 billion in assets, acquired its first Valley property when it purchased Nestle’s corporate headquarters in Glendale. Glenborough Realty Trust, a San Mateo-based real estate investment trust whose portfolio currently includes 77 properties totaling 14 million square feet, also made its first foray into the Valley, purchasing First Financial Plaza in Encino. Some of the area’s most prominent landlords also expanded their presence during 2002. Douglas Emmett Co., which owns the Sherman Oaks Galleria among other office properties in the Central Valley, moved west in 2002, acquiring Warner Center Plaza. Beacon Capital Partners, a Boston-based REIT that owns Trillium in Warner Center, acquired The Tower, one of the most prestigious office properties in Burbank. The year also saw a consolidation in shopping center ownership. General Growth Properties, whose portfolio includes Fallbrook Center in West Hills, Northridge Fashion Center and Media City Center in Burbank, added Glendale Galleria to its stable of shopping center properties. Westfield America Trust, whose portfolio includes Shoppingtown Topanga in Canoga Park and Shoppingtown Promenade in Woodland Hills, acquired Fashion Square in Sherman Oaks. Here, a listing of the deals that made news in 2002. Shelly Garcia SALES Glendale Galleria 2148 Glendale Galleria 1.5 million-square-foot shopping center Price: $415 million Buyer: General Growth Properties Seller: A joint venture of Donahue Schriber, Cigna Corp. and New York State Teachers Retirement System Major Tenant(s): Nordstrom, JC Penney, Robinsons-May Brokers: Eastdil represented seller. Buyers self-represented. Warner Center Plaza Woodland Hills Six high-rise buildings; 1.8 million square feet Price: About $335 million Buyer: Douglas Emmett Co. Seller: Alaska Permanent Fund and Harvard Endowment Fund Major Tenants: SunAmerica Inc., Salomon Smith Barney Brokers: Steve Silk, Jay Borzi, both Secured Capital Corp., represented seller. Buyer self-represented. Nestle Building 800 N. Brand Blvd., Glendale 505,000 square feet Price: $160 million Buyer: Wells Real Estate Funds Seller: Douglas Emmett Co. Major Tenant (s): Nestle SA Brokers: Mark Williams, Michael Von Konynenberg, Steve Silk, Secured Capital Corp., represented seller. Buyer self-represented. The Tower 3900 W Alameda Ave., Burbank 32 stories; 465,000 square feet Price: About $100 million Buyer: Beacon Capital Partners, Boston Seller: Tochikogyo USA Inc. Major Tenant(s): Disney Co. Brokers: Lazard Freres & Co. represented seller. Buyer self-represented. Corporate Pointe at West Hills West Hills 560,000 square feet of building space on 30-acre campus Price: $90 million Buyer: Multi-Employer Property Trust Seller: Shamrock Holdings of California (investment vehicle for the Roy E. Disney family) Major Tenant(s): Countrywide Financial Corp., IBM and Pitney Bowes. Brokers: Buyer and seller self-represented. Fashion Square (Pending) 14006 Riverside Drive, Sherman Oaks 863,000-square-foot shopping center $67 million for 50-percent stake Buyer: Westfield America Trust Seller: Prudential plc Major Tenant(s): Bloomingdale’s, Macy’s Brokers: Goldman, Sachs & Co. advised buyer. J.P. Morgan Fleming Asset Management advised seller. Warner Center Business Park Woodland Hills 15 low-rise office buildings; 468,889 square feet Price: About $55 million Buyer: Kearny Real Estate Co. and Morgan Stanley Real Estate Funds Seller: Alaska Permanent Fund and Harvard Endowment Fund Major Tenant(s): Avnet Inc., Zenith National Insurance Corp. Brokers: Steve Silk, Jay Borzi, both Secured Capital Corp., represented seller. Buyer self-represented. First Financial Plaza 16830 Ventura Blvd., Encino High-rise office building; 217,491 square feet Price: $47.3 million Buyer: Glenborough Realty Trust Seller: Cornerstone Suburban Office LP Major Tenant(s): Pepperdine University, Merrill Lynch & Co. Inc. Brokers: Tom Bollinger, Sean Sullivan, Mark Perry, Madeline Schwartz, all with CB Richard Ellis, represented buyer and seller. Mann Biomedical Park Rye Canyon Business Park, Valencia 21 buildings totaling 413,307 square feet on 167 acres Price: $37.6 million Buyer: Mann Biomedical Park LLC Seller: Legacy Partners and Goldman Sachs Major Tenant(s): Future site of Advanced Bionics, others 6200, 6250 Canoga Ave. Woodland Hills Two office buildings; 224,000 square feet Price: $32.3 million Buyer: Joint venture with Prudential Insurance Cos. and Morgan Group Seller: Trizec Properties Inc. Major Tenant(s): Meridien, Twentieth Century Fox Brokers: Adrian Goldstein, The Greenwich Group Intl. LLC, represented seller. Carlton Plaza 20750 Ventura Blvd., Woodland Hills 148,000-square-foot office building Price: $22.6 million Buyer: Crown Development Corp. Seller: Insignia Financial Services Major Tenant(s): Centerlink Insurance Co. Brokers: Bob Safai, Lyn Fields, Madison Partners, represented buyer. Seller self-represented. The Academy 5200 Lankershim Blvd., North Hollywood Three office buildings; 193,961 square feet Price: $22.2 million Buyer: Touchstone Corp. Seller: Prentiss Properties Trust Major Tenant(s): Academy of Television Arts and Sciences, Disney Co. Brokers: Buyer and seller self-represented. LEASES Pinnacle 3400 W. Olive Ave., Burbank Tenant: Warner Music Group (includes division offices for Atlantic Records, Elektra Entertainment and Warner Music Latin America, among others) Landlord: M. David Paul Development Group Square footage/type: 195,000/office space Lease Terms: 17 years/Total Consideration: $120 million Brokers: Jim Travers, George Katunich, Travers Realty Corp., represented tenant. Landlord self-represented. Corporate Pointe at West Hills 8401 Fallbrook Ave. Tenant: Unilab Corp. Landlord: Multi-Employer Pension Trust Square footage/type: 160,740/r & d;, office space Lease Terms: 15 years/Total Consideration: estimated $65 million Brokers: Kevin Housman, formerly with Trammell Crow Co., currently Douglas Emmett Co., represented landlord. Jim Lindvall, Daniel Sanchez, Grubb & Ellis, represented tenant. LNR Warner Center Woodland Hills Tenant: ATK Alliant Technology (Science and Applied Technology division) Landlord: Lennar Partners Square footage/type: 74,088/office space Lease Terms: 10 years/Total Consideration: about $25 million Brokers: John Sabourin, Marc Spellman, Colliers Seeley, represented landlord. Josef Farrar, David Kluth, Julien J. Studley, represented tenant. 29011 Commerce Center Drive Valencia Tenant: Bertelsmann Services Inc. Landlord: Sares-Regis Group Square footage/type: 165,000/industrial space Lease Terms: 5 years/Total Consideration: $4.5 million Brokers: Bruce Powell, Tim Crissman, Crissman Commercial Services represented tenant. 1 Pending