San Fernando Valley Vacancy fell in the quarter to 13.2 percent, down from 14.5 percent a year ago. Correspondingly, rates increased to $2.31 compared to $2.20 a year ago. However, it’s a tale of two Valleys as the eastern part of the market reported a vacancy of only 8.6, while the western sector was significantly higher at 15.1 percent. In the industrial market, the central Valley had only 0.7 percent vacancy. Main Events -Package deliverer UPS leased nearly 137,000 square feet from Geringer Capital at 16689 Schoenborn St. in North Hills. The industrial site is about a mile from UPS’s main local site in Van Nuys. Financial details of the lease were not disclosed. -ISO Beauty Inc. bought a 30,000-square-foot industrial building at 9111 Winnetka Ave.in Chatsworth for $5.49 million. The distributor of hair styling products also sold its 17,700-square-foot industrial building at 6703 Valjean Ave. in Van Nuys for $4.18 million. -L.A.-based Lion Real Estate Group paid $18.8 million for the Terraces on the Boulevard, an apartment complex with 112 units at 5919 Reseda Blvd. in Tarzana. The price amounts to nearly $168,000 per unit. -Rexford Industrial Realty Inc. bought an industrial building at 525 Park Ave. in San Fernando for $7.6 million. The 63,403-square-foot property is leased by two tenants. -Film equipment supplier SirReel Studio Rentals leased 33,000 square feet of warehouse space in Sun Valley to merge several locations into one. The company’s new location at 8500 Lankershim Blvd. enabled it to consolidate several Burbank locations. -Blueprint Post Production bought the DES Building Park in Toluca Lake. The three-building 60,000-square-foot complex at 4142 Lankershim Blvd. sold for $13 million. -A property occupied by a Wendy’s restaurant at 8232 De Soto Ave. in Canoga Park sold to a private investor for $3 million. -Investors Brian and Kristin Brahms bought the 23-unit apartment building at 9929 Sepulveda Blvd. in Mission Hills for $4.1 million. Kenworthy Family Trust was the seller. -Tarzana investment and property management firm Gelt Inc. bought land to develop 254 apartments in Reseda. The company did not disclose what it paid for the 2.4 acres at 6625 Reseda Blvd. A former Dodge dealership on the property will be demolished. Construction is scheduled to start in 2017 and finish in 2019. Burbank and Glendale At $3.12 a square foot, Burbank has the highest office lease rates in the greater Valley region, followed by Glendale at $2.58. Nevertheless, vacancy spiked significantly in Burbank during the quarter to 16.2 percent, compared to 13.7 percent in the previous quarter. Burbank has 113,800 feet of office space under construction, the most of any submarket in the greater Valley region, according to Colliers International. Main Events -The 304,500-square-foot office building at 500 N. Brand Blvd. in Glendale sold for $80 million. -Kids from the Valley XX paid $19.2 million for the nearly 65,000-square-foot site of the CarMax dealership in Burbank. The used car lot is located at 1000 South Flower St. -The nine-story office building at 500 N. Central Ave. in Glendale changed hands for $27 million, or $217 a square foot. Volwood Corp. in Burbank bought the 126,000-square-foot building. -Extreme Reach, a TV and video advertising company, leased 14,423 square feet in the Business Arts Plaza at 3601 W. Olive Ave. in Burbank, according to data firm CoStar Group Inc. Financial terms of the lease were not disclosed. -Alpine Property Management Co. leased 14,000 square feet of office space at 14 W. Magnolia Blvd. in Burbank. Financial details of the lease were not disclosed. -Rexford Industrial Realty Inc. sold the 13,497-square-foot creative office property at 1840 Dana St. in Glendale for nearly $4.3 million. The building was originally industrial but in 2011 turned it into offices. -Glen Forty Apartment, a 40-unit complex in Glendale, sold for $8.2 million to Pacifica Glendale Apartments. The complex, built in 1956, is located at 401 W. Glenoaks Blvd. Conejo Valley Vacancy ratcheted up in the Conejo Valley to 15.6 percent in the second quarter, compared to 15.1 a year ago, based on data from Colliers International. Construction continues at the Westlake Park Place project in Westlake Village. Main Events -North Ranch Shopping Center, a 146,600-square-foot mall at 3815 Thousand Oaks Blvd. in Westlake Village sold for nearly $123 million. -L.A.-based Rexford Industrial Realty Inc. paid $21.8 million for an 85 percent interest in a two-building industrial complex at 3233 Mission Oaks Blvd. in Camarillo. Rexford already owned 15 percent of the property. -Oak Park Plaza, a 29,950-square-foot shopping center at 702-706 Lindero Canyon Road, sold for nearly $12 million. -The Terrace, a two-level shopping center at 1714 Newbury Road in Newbury Park sold for more than $15 million, or $385 a square foot. Santa Clarita Valley Since the beginning of the year, office lease rates in Santa Clarita have increased 6 percent to $2.44. In the quarter vacancy fell to 13.3 percent compared to 15.7 a year ago. Industrial market rates held steady at 64 cents, according to data from Colliers International. Main Events -Tarzana real estate firm Gelt Inc. purchased Monterra Ridge, a 232-unit apartment complex at 28085 Whites Canyon Road in Canyon Country, for $45.5 million. -Stevenson Ranch Plaza sold for $72.5 million. The 187,035-square-foot center at 24917 Pico Canyon Road was 97 percent occupied at time of purchase.. -Automobile Club of Southern California signed a 10-year lease for roughly 29,000 square feet in the Summit at Valencia on 27240 Turnberry Lane. -Bouquet Center in Santa Clarita sold for $59 million to San Diego real estate investment trust Retail Opportunity Investments Corp. for $59 million. Antelope Valley With a vacancy of only 1.8 percent, industrial space in the Antelope Valley is scarce. Rates have increased 23 percent in the last year to 54 cents, according to Colliers International. In contrast, the office market has a 21.8 percent vacancy, the highest of any Valley region submarket, with asking rates of $1.74, the lowest in the region. Main Events -A 24,000-square-foot medical and office park in Palmdale sold for nearly $5 million. L.A.-based private investment group Valerio Court bought the Challenger Business Park at 450 W. Palmdale Blvd. -Construction has started on a 24-acre site near Palmdale’s Auto Mall that will become a CarMax dealership and refurbishment center. The dealership section will comprise about 50,000 square feet and have 200 to 300 cars. -Avalon Park, a 77-unit apartment complex at 38705 20th St. East in Palmdale, sold for $6.7 million or $87,532 per unit.
SPECIAL REPORT: Main events in Valley submarkets in the second quarter.
