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Friday, Jun 9, 2023


SHELLY GARCIA Staff Reporter General Motors Corp. is close to signing a lease to set up an auto superstore in Burbank, just as the city learned that Ford has killed its plans to build a superstore there. The site GM is considering is in the 103-acre development planned by Vestar Development Co., according to Bud Ovrom, Burbank city manager. The Vestar project will include a retail marketplace, one or more automotive dealerships and an office complex. Meanwhile, a move by Ford Motor Co. along with Galpin Ford owner Bert Boeckmann to set up an automotive superstore on an eight-acre site next to the Golden State (5) Freeway was scuttled earlier this month when Ford scrapped plans to set up a superstore network in the Valley. “Boeckmann and Ford couldn’t reach an agreement on the operating issues of how this network would work,” said Ovrom. Vestar officials declined to comment on the automotive portion of its development, saying the company is bound by confidentiality agreements. The developer is planning to apportion 14 to 19 acres for automotive use, Burbank city officials said. But that plan could change by the time the project is finally approved by the Burbank City Council. The size of the automotive segment may depend on discussions currently underway between the city and Kilroy Industries, which was selected by Vestar to develop an office park adjacent to the retail center at Buena Vista Street and Empire Avenue. Kilroy’s contract with Vestar specifies the company will develop 1 million square feet of office space, but in its negotiations with the city, Kilroy has said that it may have to scale back that amount considerably, according to Burbank officials. Kilroy officials did not return calls. Burbank is seeking a higher-density office development to rebuild the employment and property-tax base lost when Lockheed left the city. “We are very driven by creating jobs,” Ovrom said. “If you’re only going to put 600,000 to 800,000 square feet in there, there’s no way we’re going to justify zoning for that,” Ovrom said. Rather than entitle an office park with less square footage, which would not accommodate as many companies and employees, Ovrom said, the city would consider increasing the automotive entitlements as a way to achieve its employment and tax revenue goals. “What we could do is increase the component going for automotive use and make the business park smaller by 15 acres,” Ovrom said. “It’s a question of how much bang we get for the buck.” Burbank officials said Vestar is also negotiating with CarMax and AutoNation for space in the development. Burbank officials expect to complete within the next few weeks an environmental impact report that details a number of different uses for the space. The city is also investigating the market potential of various options, and expects to present a “defined project” shortly, said Robert Tague, community development director for the city. Wooing Hollywood to Valencia Lincoln Property Co. is putting the finishing touches on its renovation of 430,000 square feet of office space on 150 acres that was formerly occupied by Lockheed Martin Corp.’s research and development operations. The park, one of two components of Lincoln’s Rye Canyon Business Park, also features an executive golf course. It is slated to be available for tenants in October. In the interim, Lincoln has begun promoting the property as a site for location film shoots. The developer has hired a full-time employee to manage the location business. Bill Schubin, Lincoln’s acquisitions partner, said it has already attracted a “fair amount of interest” from television, movie, music video and commercial production crews. Besides the backdrops with mountains and extensive landscaping on the so-called “north campus” office park property, Schubin said, “the attraction is that we’ve got a guarded, gated entrance, and it’s a very controlled environment. They don’t have to bother with closing public streets.” Schubin said Lincoln learned from Lockheed that film crews had expressed interest in using the location, although Lockheed had not pursued the business at the time. “We thought it was something we wanted to take advantage of,” Schubin said. A television show, which he declined to name, is slated to film on the premises once production for the fall season resumes. The other component of Lincoln’s big Rye Canyon Business Park a 2.2 million-square-foot industrial park planned for 120 acres is progressing rapidly. Lincoln recently filed its grading plan with the city of Santa Clarita for the first phase of that $120 million project. The first phase will include about 25 acres, and is slated for completion by fall 1999. Another three or four phases are scheduled, with completion of those slated over the next three to four years, depending on market conditions, Schubin said. The Rye Canyon Business Park is adjacent to Newhall Land & Farming Co.’s Valencia Commerce Center. News and notes Sugar Bear Trust has acquired a 30,534-square-foot industrial building in Chatsworth for $1.6 million. Kim Wolfson of Majik Properties represented Sugar Bear and David Young, Bill Napier and Dick Held of Capital Commercial/NAI represented the seller, Hero Properties. The Castruccio Revocable Trust of Los Angeles acquired a 20,950-square-foot industrial building in Chatsworth for $1.35 million, according to Westmac Commercial Brokerage Co., which represented the buyer. Tishman International Cos. on Aug. 6 broke ground on a 273,000-square-foot office tower in Warner Center. The high-rise will house the expanded headquarters of 20th Century Industries. Xylan Corp. signed a $12 million lease for a 128,700-square-foot building in the Calabasas Lost Hills Business Park currently being constructed by Cypress Land Co. Xylan, which makes networking switching systems, intends to move its corporate headquarters from another building in Calabasas, to the facility by the end of this year or early next year. Michael Tingus and John DeGrinis of the Seeley Co. represented Cypress and Ken Ashen and Michael Salter of CB Richard Ellis represented Xylan. Xylan is the second company to lease space in the facility. Netcom Systems Inc. will occupy a 107,000-square-foot building in the park. Told Partners, an industrial and commercial real estate brokerage, has opened an office in the Santa Clarita Valley. Stephen B. Robertson and LeeAnne Sichel will head the new office.

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