Two buildings with soundstages and production studios have sold to a private investor who saw an opportunity for lucrative rents in the ultra-tight Van Nuys market. Brokers at Lee & Associates-LA North/Ventura sold two 22,000-square-feet structures at 14955 and 15001 Calvert St. for $8.75 million, or $199 a square foot, the company said. The buyer, a limited liability corporation entitled Esh Holder, is a local property investor with no plans to use the space, according to Randy Kobata, a principal with Lee & Associates who brokered the deal on behalf of seller and the buyer along with Mike Tingus and Daniel Davis. Production studios and soundstages are not the typical acquisition target for investors, Kobata explained, and they are uncommon in Van Nuys. But these facilities have been operating as production studios for 30-plus years and were built by the father of the sellers. It’s the first time they were sold, he added. “It demands, on a lease standard, higher rates as a production studio than industrial space would,” Kobata said. Production companies would probably pay double the rent for the two buildings than what a standard industrial building could get because the buildings offer specialized features, such as full air conditioning, sound proofing and significantly more power, he added. For industrial buildings 10,000 square feet to 30,000 square feet in Van Nuys, average rent is $1 to $1.05 per square foot per month, due to a vacancy rate of less than 1 percent, according to Kobata. “And that’s probably a conservative estimate.” The studios are currently leased on a short-term basis to a production company, and the new owner intends to continue renting it for television and feature films, said Kobata. Previous shows that have been filmed there have included “Beverly Hills 9021”0 and “Melrose Place,” while CBS, ABC and HBO networks have used the space, according to Lee & Associates. Best Use Apartments continue to attract investors, and the latest to jump into the fray is Glendale’s national office and industrial landlord, PS Business Parks Inc. The real estate investment trust partnered with Kettler, an apartment, condominium and mixed-use developer in McLean, Va., to build an apartment complex within one of its business parks in Tysons, Va. The apartments just opened to renters. Highgate at The Mile, a 395-unit luxury mid-rise complex at 7915 Jones Branch Drive sits within PS Business Parks’ 750,000-square-foot, 45-acre The Mile business park. The complex replaced a 123,000-square-foot building that had occupied the 5-acre site. “Where it makes sense, and where there are opportunities like that, we would pursue,” said Chief Financial Officer Edward Stokx. “This just enhances the value of that park and the offerings we have in the park.” It’s the REIT’s first-ever apartment project, and stands out among its 99 parks and 14.6 million square feet of industrial, office and flex space. The complex is within walking distance of the public transportation system, shopping, restaurants, entertainment and major employers. It also features green space with two parks, a mile loop for walkers and joggers and a walking trail. Industrial Attraction Jones Lang LaSalle Inc. has made its first move to have a greater presence in the industrial market of the San Fernando Valley. The Chicago-headquartered firm has hired 30-year industrial veteran Brent Weirick to work out of its Burbank office, the company said. Weirick previously served as executive vice president of an international brokerage firm. “The San Fernando Valley industrial market is very vibrant as new supply looks to offset rising rents and first-quarter vacancy of 1.2 percent,” said Tony Morales, international director for Jones, in a statement. According to JLL’s first-quarter report, the Valley industrial market has an inventory of 124 million square feet and an average asking rent of 77 cents a square foot, higher than all other L.A. County submarkets except for the 82 cents a square foot in the South Bay. Staff Reporter Carol Lawrence can be reached at (818) 316-3123 or [email protected].
