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Friday, Jun 2, 2023

Final Phase of The Plant Redevelopment Expected to Close

It looks like Voit Development Co. and Selleck Development Group will end the year by closing the book on The Plant, a development they began constructing in 1997. The joint venture has sold two of five facilities that comprise the final phase of the redevelopment of the former GM facility in Panorama City with the balance of the properties due to close shortly. The developers closed on one 200,000-square-foot building that was sold to Zodax and a 220,000 square foot property that was sold to Living Spaces Furniture, a retailer that will make its Valley debut with the transaction. The sale of a third property to Veratex is expected to close shortly as is a fourth, smaller property. The fifth building will be leased. The latest sales mark the completion of what has been considered one of the most successful redevelopment projects in the Valley and one that has been largely credited with helping to revitalize Panorama City. The first phase included an industrial complex and a retail shopping center. In all, The Plant comprises 1.75 million square feet of space. Living Spaces, which has two stores in Rancho Cucamonga and La Mirada, bills itself as the largest furniture store in Southern California. The showroom will occupy about 103,000 square feet with another 72,000 feet dedicated to warehouse space. Living Spaces’ business model offers furniture for immediate delivery. The retailer stocks a wide assortment, but does not offer custom orders. The store also distinguishes itself with a concept it calls “shoppertainment.” Customers are invited to peruse the offerings while sipping coffee or soda. There is a big screen TV with recliners for those who want to take a break from shopping, and the retailer provides a kid’s room equipped with books, movies and videogames. Zodax, a distributor of home accessories, and Veratex, a bedding and linens maker, both were among the earliest purchasers of properties at The Plant. The newest acquisitions comprise additional space for the companies. Zodax, which currently occupies a 100,000-square-foot building at The Plant, will occupy half of the new building and lease the balance. The Plant, a complex at Van Nuys Boulevard and Arminta Street, had been the site of a General Motors assembly facility that went dormant in the 1980s. Workers at the GM plant had once built the Panorama City area into a thriving suburb, but with the discontinuation of the operation, the area languished. GM initially sold a large portion of the property to the Selleck/Voit venture, resulting in the development of an industrial and retail complex. But at the time, GM retained the portion that comprised the second phase, including the 220,000 square foot building acquired by Living Spaces. Living Spaces is expected to demolish a part of that property to make way for a showroom and a warehouse. Calls to the company were not returned at press time. Neither Voit nor Selleck would comment on the price paid for the buildings. Brokers familiar with the area estimated that the Zodax property sold for somewhat less than $20 million. The Living Spaces property was listed at $24.2 million prior to the sale. David Hoffberg and Jerry Scullin, brokers with Delphi Business Properties, represented Zodax in the deal. Neither was available to comment for this story. John DeGrinis, Brent Weirick and Patrick Duross, brokers with Colliers International, represented the developers and Living Spaces. The team is also marketing the remaining building, a 17,000 square foot property that Selleck Development will offer for lease. They were not available for comment at press time. Burbank Office Building Sold A Burbank office building totaling 117,000-square feet has sold for $20 million. The property, at 2777 Ontario Ave., was acquired by a joint venture of Second Street Ventures and AEW Capital Management. Second Street Ventures, based in Marina del Rey, is a developer focused on urban infill projects along transportation corridors. The seller was Ken Holland’s Trust. Castaic Sale A shopping center in Castaic was sold for $15.4 million. The Castaic Town Center, at 27900 Sloan Canyon Road, sits on 11 acres of land and totals 40,100 square feet of space. It is anchored by Walgreen’s. The center was built in 2006. Bert Abel, John Cserkuti and Barry Rothstein, all with NAI Capital, along with Jeff Hanson and Ryan Gallagher, brokers with Grubb & Ellis, represented Castaic Town Center LLC in the transaction. Warner Area Sale A four-story office building in Canoga Park was sold for $14.75 million. The property, totaling 80,014 square feet, is located at 6800 Owensmouth Ave. It is 97 percent leased with about 27 tenants. Mark Leonard, a broker with Lee & Associates, represented the buyer, ECI Owensmouth LLC, and the seller, Weinreb Family Trust. Valencia Headquarters Underway Mechanix Wear, a maker of performance gloves used by motorsports competitors and others, is building an $11 million headquarters in Valencia. Under development by Sheridan Ebbert Real Estate Development, the project will comprise 75,000 square feet and sit on a five-acre site at 28525 Witherspoon Parkway. Oltmans Construction Co. is the general contractor. Simi Sale A five-acre parcel of industrial land has sold in Simi Valley for $5.45 million, a price the brokers say is the highest paid per-square-foot for Simi Valley. The property, at 4753 E. Los Angeles Ave., contains two 4,000 squre foot industrial buildings. Given that land availability in Simi Valley and surrounding regions is extremely tight, the land was sold at a premium price of approximately $25 per square foot,” said Darren Cline, a broker with Colliers International who, along with Colliers’ John DeGrinis, represented the seller of the property, Air Liquide America. The buyer was not disclosed. Senior reporter Shelly Garcia can be reached at (818) 316-3123 or by e-mail at sgarcia@sfvbj.com .

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