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Thursday, Mar 28, 2024

MGA Entertainment Buying Times Property

A deal has been struck to sell the coveted Los Angeles Times property in Chatsworth to MGA Entertainment, makers of Bratz dolls, for an estimated $28 million. MGA, which is currently located in Van Nuys, beat out a handful of developers who saw in the 26-acre parcel a rare chance for a substantial industrial redevelopment in the center of the San Fernando Valley. With an industrial vacancy rate of under 4 percent in the Valley, such a development would have met with almost certain success, according to the developers who were involved in the bidding process. But they added that because a developer would have to factor in redevelopment costs, including rising materials prices, along with the cost of carrying the property through the process, the bids they submitted were not likely to top that of an owner-user like MGA. MGA is likely to have offered as much as a 15 percent premium over bids from other developers, which included LNR Property Corp., M.W. Ossola and Associates Inc.; Overton Moore Properties, Sheridan Ebbert Real Estate Development and Voit Development Co., according to sources. MGA officials would not comment on the purchase price for the property, which is being divested by Times’ owner The Tribune Co., as part of a consolidation of its printing facilities designed to cut costs. MGA’s move to acquire the property comes as the company has experienced explosive growth and more recently, completed several deals that will expand its business even further. The company, which currently has about 350 workers at its Van Nuys facility, with some 600 worldwide employees, is hiring an additional 100 staffers locally. “We are going to make a major headquarters here,” said Isaac Larian, CEO of MGA. “Our facility here is very limited and our success is because of our people. We want to have a day care facility, a gym, a lot of things employees would like to have. This land will give us the opportunity to do that.” Privately-held, the family-owned company does not report revenue figures. But MGA’s success with Bratz, a line of dolls that mimic the urban hip-hop fashions of today has been well-documented. In a few short years since its introduction in 2001, Bratz bumped the 50-year-old Barbie franchise from Mattel to second place, and the dolls have pushed the company into the entertainment arena with videos and other licensed products. The company manufactures overseas, but virtually all the other functions, from design and development to accounting and licensing, are handled from its U.S. headquarters, which currently provide just 160,000 square feet of space, about 56 percent less than the building that now sits on the Times site. Larian said that most of the growth has come from Bratz as well as several other lines, including Rescue Pets and Yummi-Land Cr & #269;me Soda Pop Girls. The company just inked a deal to acquire Little Tikes from Newell Rubbermaid Inc., a move that will take MGA into the children’s toys and furniture categories. MGA also recently signed a joint venture agreement under which it will sell Zapf Creation products in North and South America. Zapf makes baby dolls that are designed to mimic some of the same movements and activities as real infants. Trammell Crow represented the Tribune Co. Multi-family Sale A 152-unit apartment building in Northridge has sold to an investment company for $28.6 million. The property, built in 1973, is located at 10435 Lindley Ave. The buyer, StarPoint Properties LLC, expects to spend about $1.5 million to renovate the property Chris Thompson, a broker with Investment Real Estate Associates, represented the seller, a unit of Pacific Property Co., and the buyer, IREA said. Industrial Sale A 47,650-square-foot industrial building in North Hollywood was sold for $5.8 million. The building, at 12222-12228 Sherman Way, will serve as a distribution center for Independent Electrical Supply. The property is located on a 2.3-acre parcel. Steve Scott, a broker with Lee & Associates-LA North/Ventura, represented the new owner, Ron Snow. Bruce Simpson, a broker with Delphi Business Properties, represented the private seller. Simi Sale A 9,723-square-foot office building in Simi Valley was acquired by a user for $3.3 million. The building, Alamo Executive Center at 3713 Alamo, will be used for corporate headquarters for Newman & Sons, a concrete and asphalt contractor. The building’s current tenant, Simi Starship, will be relocating to an office condominium, also in Simi Valley. Mike LaRocque, a broker with GVA DAUM, represented the buyer and DAUM’s Chris Sullivan and Mike Foxworthy represented Simi Starship. Chatsworth Lease DataDirect Networks has leased a 55,563-square-foot industrial facility in Chatsworth for its headquarters location. The five year lease, at 9351 Deering Ave. in the Northpark Industrial Center, is valued at $2.3 million. The company, a developer of storage network and other technologies, is expected to employ 100 people at the site. Scott Caswell, a broker with Delphi Business Properties, represented the landlord, Northpark Industrial. Bennett Robinson, a broker with CB Richard Ellis, represented the tenant. Westlake Sale A 38,764-square-foot parcel in Agoura Hills was sold for $1.2 million. The property was acquired by Conejo Development Co., which plans to build an 11,600-square foot warehouse on the site. Chris Richards and Bill Napier of NAI Capital represented the seller, Bijan Zaghi. The buyer was represented by Patrick Naylon, a broker with BP Realtor. Senior reporter Shelly Garcia can be reached at (818) 316-3123 or by e-mail at [email protected] .

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