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Sunday, Jun 4, 2023

Downtown Glendale Block Put on the Block

An entire city block is on the market in Glendale, and it may just be the future site of another mixed-use apartment complex. At Central Avenue and Lexington Drive, the 3.2-acre property is occupied by an office building, a three-story parking structure and a Citibank branch that will be moving across the street. Marketed by CBRE Group Inc. for owner Citigroup Inc., the property is zoned for residential or mixed-use development, which means that it could be attractive to a developer looking to get in on the mixed-use residential and retail developments the city is encouraging for the downtown area. Built in 1979 for Glendale Federal Bank, the office building is six stories and approximately 84,000 square feet. Currently, more than 2,200 apartments have been approved or are under construction in the downtown area, and sources have told the Business Journal that the property has attracted the attention of several developers interested in a redevelopment of the property. Vancouver developer Holland Partner Group is currently constructing a 238-unit mixed use project at the corner of Brand Boulevard and Wilson Avenue, just a few blocks from the Citigroup site. But while Holland acquired a vacant site, the Lexington at Central property has contingencies, with Citigroup wanting to retain some presence in any new development. If it sells, the property would be one of the largest deals in Glendale in decades. “That, in terms of downtown land, would be one of the largest land sales in a very long time,” said William R. Boyd, Jr., senior managing director at Charles Dunn Co., who has worked in the area for decades. Boyd sold the site now home to Holland’s project and City Center in the 1980s, previously the largest land sale in town. Offers are expected in the next few weeks, and Citigroup has indicated it wants to sell the property before the end of the year. Sterling Acquisition With the residential market hitting record-low inventories, multi-family sales have continued to dominate the investor market. And in that market, central Valley apartment complexes have remained hot commodities. Billionaire L.A. real estate investor Donald Sterling has acquired a majority interest in Encino Terrace, a 95-unit apartment building in Encino. The property sold last month for $14.6 million, or $183,159 a unit, the highest price for an Encino multi-family property since June 2011, according to CoStar Group Inc. Sterling, who owns more than 160 multifamily properties in Southern California, acquired the property through his Sterling Corp. The firm owns just one other property in the Valley, Lindley House in Northridge, according to CoStar. The three-story Encino building was constructed in 1969, though updates have been made since it was originally constructed. The 104,754-square-foot property at 17550 Burbank Blvd. has a mix of studio, one-, two- and three-bedroom apartments, with rent starting at $895 a month. The complex has a pool, gym and gated parking. It was sold by Sherman Oaks company BP Realty. Both the buyer and seller were self-represented. Palmdale Sale A portion of Palmdale Marketplace, a power center at 39228 10th Street West, has sold for an undisclosed amount to a real estate investment firm Merlone Geier Partners. The 500,000-square-foot center is anchored by Best Buy, Staples and Target, all of which own their buildings. The sale was limited to 215,202 square-feet of space in 11 separate buildings, according to CoStar. The center was built in 2000, with additional buildings completed in 2001. Current tenants of the acquired portions include Barnes & Noble, IHOP and Ross Dress for Less. Jim Slaught, a broker with Lee & Associates in Santa Barbara who represented the buyer, said the outdoor mall is desirable because of its proximity to the Antelope Valley Mall. “This asset is well located in Palmdale’s major retail corridor and benefits from the traffic generated by the regional mall nearby,” he said in a statement. The seller, Beverly Hills firm O&S Holdings LLC, represented itself. Staff reporter Kelly Goff can be reached at (818) 316-3123 or kgoff@sfvbj.com.

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