Trammell Crow Co. has closed on a 33-acre industrial parcel in Sun Valley after emerging as the winning bidder for the land in a bankruptcy sale. Trammell Crow, which was also the stalking horse selected for the auction, was one of four bidders that made offers on the property. The winning bid, $18,750,000, was a sum that fell toward the center of the bidding, which ranged from $18.5 million to $19.1 million. Property sold at auction is evaluated on the bid amount as well as other conditions potential buyers set. The sale marks the first time the property, which has a long, troubled history, has been in the hands of a professional real estate development company and offers hope, perhaps for the first time, that the site will be transformed into a viable, commercial development. But developing the site won’t be easy, even for pros like Trammell. The property, at Branford St. and San Fernando Road, comes with a host of environmental problems. Others have noted that the original tract map does not sufficiently map out the portions of the brownfield site which may not be develop-able, and the configuration of the property presents considerable design challenges. Trammell Crow officials say they are aware of the potential problems, but the parcel also presents significant opportunities. “It’s a great piece of real estate and a great location in a very supply-constrained market,” said Brad Cox, Trammell Crow managing director. “Anytime you’re looking for good real estate, you have to be creative to find solutions, and we’re hoping to make it a big win for us and the city of Los Angeles.” Trammell Crow will spend some time working with city officials and with the site in order to come up with a design plan for the development, Cox said. The timeframe for completing the draft is still undetermined. “We’re just trying to get our hands around it,” Cox said. The other bidders included LNR Property Corp., Revita Development LLC and an Overton Moore Properties affiliate. Trammell Crow, which also developed the West Hills Corporate Center, recently completed a $450 million redevelopment in Century City, including 725,000 square feet of office space, 30,000 square feet of restaurants, a 10,000 square foot cultural center and a 4-acre park. About 70 percent of the office complex, 2000 Avenue of the Stars at Century Park, was pre-leased, and the company is currently renovating the adjoining Century Plaza Towers hotel. Plans to redevelop the Sun Valley site have been stymied since the beginning of the decade, either as a result of poor management or difficulty working through the environmental issues connected with the property. But the earlier developers had little or no track record, and this is the first time that a professional development team will tackle the project. If it comes to pass, an industrial development in the area could add a significant economic engine to the Northeast Valley, which has long sought opportunities to bring jobs to the area. Shopping Center Sold After a complete overhaul, CIP Real Estate has sold the Northridge Promenade for $22 million. The center, a five-acre, 90,344-square-foot retail project, was acquired by Core Realty Holdings LLC in Newport Beach. Northridge Promenade is anchored by Guitar Center, Beverages & More, Keller Williams and LA Buffet. It underwent a renovation in 2002, including a new fa & #231;ade, landscaping and parking lot upgrades and the addition of a building for Guitar Center. CIP, which owned the property with Alex. Brown Realty Inc., purchased it in 2002 when it was 70 percent vacant. CORE plans no additional development at the center. Valencia Construction Begins Parker Properties has broken ground on a five-story office property in Valencia. The project, Summit Oaks, will total 144,000-square-feet of office space. It is located at 28515 Westinghouse Place. Completion is scheduled for mid-2008. The property sits on 4.29 acres and is adjacent to two hotels. Doug Marlow and David Solomon, brokers with CB Richard Ellis, are marketing the project. Industrial Properties Sold Owner-users are still buying up industrial buildings at a rapid clip. Two such deals have recently closed. A 12,500-square-foot property in Van Nuys was sold for just under $2.4 million. The building, at 15924 Arminta St., was acquired by Aaron Kirsch, whose company will occupy the building. Jerry Scullin, a broker with Delphi Business Properties, represented the buyer. The seller, Richard M. Decker, was represented by Chris Jackson and Todd Lorber, brokers with NAI Capital. NAI also transacted the sale of a 12,581-square-foot industrial building in Valencia for somewhat more than $1.9 million. The building, at 27717 Avenue Scott, was sold to Machinery Properties LLC, which will occupy the space. NAI’s Jackson and Lorber along with Lenny Cohen, represented the seller, Kirit Gajera. The buyer was represented by Brett Howard of Howard & Mills Inc. Glendale Gets Another Tenant ING Clarion, the new owner of The Lexington in Glendale, has logged another new tenant. Paychex Inc., a payroll processing and HR services firm, has inked a deal for 18,950 square feet at the 22-story office tower at 500 North Brand Ave. Paychex is moving its Pasadena offices into the new location, which will serve as its San Gabriel Valley office. The deal marks a continued improvement in occupancy levels in Glendale office properties and another feather in the cap of ING Clarion which remodeled the property and changed the name of the building since acquiring it. In 2007 so far, the company has signed more than $15.5 million in new leases, according to Michael Weiner, a broker with DAUM Commercial Real Estate Services, who represented the landlord along with DAUM’s Paulette Toumazos and Jennifer Donaldson. Dave Wills, a broker with Cresa Partners, represented the tenant. Senior Reporter Shelly Garcia can be reached at (818) 316-3123 or by e-mail at [email protected].
