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Thursday, Sep 21, 2023

Real Estate Quarterly: Q2, 2022

San Fernando Valley

Office tenants gave back nearly 47,000 square feet of space during the second quarter. Asking rents increased 2 cents quarter over quarter and year over year to $2.69 a square foot. In the industrial market, 673,105 square feet sold or leased during the quarter. Average asking rents increased 10 cents quarter over quarter and 41 cents year over year to $1.54. The vacancy rate was a mere 0.3%.

Main Events

Pine Investment Partners sold a North Hollywood property at 13401-13431 Saticoy St., which spans 33,505 square feet, for $10.6 million to 625 South Pacific Avenue.

• Mitsuwa, a Japanese supermarket and restaurant food court, is opening a new location in Northridge this fall. The lease is for a 9,600-square-foot space at 8990 Tampa Ave.

• Greenbridge Investment Partners purchased a trio of apartment properties in the San Fernando Valley totaling $14.8 million. The company took ownership of 15042 Dickens St. in Sherman Oaks for $5.9 million; 21133 Saticoy St. in Canoga Park for $5.3 million; and 13001 Vanowen St. in North Hollywood for $3.6 million.

• Rexford Industrial Realty bought a 200,000-square-foot industrial property located at 14200-14220 Arminta St. in Panorama City for $90.2 million.

• Happy Place Stages bought a 37,600-square-foot warehouse in North Hollywood for $14,300,000, or $380 per square foot. The warehouse is located at 5446-5450 Satsuma Ave. The property, which was built in 1952, and renovated in 2017, features four buildings, including 13,000 square feet of cargo containers converted to creative office space, a 1,400-square-foot office, and two warehouses: one 8,000 square feet and the other 20,000 square feet. 

• Sylmar Studios, a 300,000-square-foot film and television production facility, broke ground in Sylmar. The $500 million studio development project will feature 12 soundstages and 120,000 square feet of office space. The 27-acre entertainment campus has a 2023 completion date.

• Newmark Group Inc. completed a 37,473-square-foot industrial lease with Hagerty Inc. at 7915-7933 Haskell Ave. in Van Nuys with an undisclosed tenant.

Burbank and Glendale

More space is available in Burbank’s office market as tenants gave back 33,492 square feet during the quarter. The vacancy rate rose slightly to 8.6%, up from 8.2% the previous quarter. Office rents, meanwhile, rose 4 cents quarter over quarter to $4.31 a square foot. There was 391,732 square feet under construction. In Glendale, the office vacancy rate fell to 23%, down from 23.8% the previous quarter but up from 20.3% the previous year. There was 306,204 square feet under construction. The asking rent was $3.31 a square foot.

Main Events

The Glendale Financial Square building — a 126,500-square-foot office building located at 225 West Broadway in Glendale — sold for $27.5 million to two Southern California real estate investment firms taking ownership as Hacienda Associates. The seller was a partnership between three local investors (Hyun 1996-2 Family,  Royalblue and Broadway JSY).

• Amazon.com Inc.’s first brick-and-mortar clothing store opened at the Americana at Brand in Glendale. Amazon Style debuted on May 25 at the center, owned by developer Rick Caruso’s company, Caruso. The store uses Amazon technology to help customers find clothes and personalize their purchases as well as cut down on the time needed for the shopping process.

A roughly 23,000-square-foot office building at 310 E. Colorado St. in Glendale sold for $12.3 million.

A 10,000-square-foot industrial facility at 3401 West Pacific Ave. in Burbank sold for $4 million. The property was recently renovated. It is near the Burbank Airport and major office tenants in the area. 

Conejo Valley

Office tenants gave back more than 14,000 square feet during the quarter, while no office product was under construction. Asking rents increased 2 cents quarter over quarter and 6 cents year over year to $2.75 a square foot. 

Main Events

Sares Regis Group sold a pair of industrial buildings totaling 172,516 square feet in the Conejo Spectrum Business Park for $69.5 million to a private investment group, which is aiming to lease the newly constructed buildings. 

Majestic Asset Management sold a multi-tenant office building at 2829 Townsgate Road in Westlake Village for $27 million.

Mayhew Plaza Shopping Center — a Smart & Final Extra-anchored neighborhood shopping center located at 22631-22653 Ventura Blvd in Woodland Hills — sold for $24.5 million.

Santa Clarita Valley

Office vacancy during the second quarter was 20.4%, down from 20.8% the previous quarter but up from 17.5% the previous year. Asking rents increased 2 cents quarter over quarter and 5 cents year over year to $2.70 a square foot. 

Main Events

Rexford Industrial Realty, Inc., as part of the acquisition of six industrial properties for an aggregate purchase price of $218 million, purchased 29125 Avenue Paine in Valencia for $45 million.

A portfolio of eight grocery-anchored retail properties including the Northpark Square Village in Valencia sold for roughly $278 million.

A multi-tenant industrial building at 26858 Ruether Ave. in Santa Clarita sold in a 1031 exchange transaction for nearly $4 million. The property was built in 2002 and has a nearly 17,000-square-foot building.

Antelope Valley

A total of 108,898 square feet of industrial space was sold or leased during the quarter. The vacancy rate fell to 1.8%, down from 3.7% the previous quarter and 3.3% the previous year. Industrial rents increased to $1, up 5 cents from the previous quarter and 19 cents from the previous year. 

Main Events

Dallas-based industrial developer Covington Group has purchased a vacant 77-acre site at 400 W. Avenue M in Palmdale for $6 million from an undisclosed seller with plans to build an industrial warehouse of 1 million square feet.

Transwestern Investment Group acquired 4.6 acres in the Palmdale/Lancaster submarket. Transwestern Development Co. will build a nearly 100,000-square-foot industrial property on the site. Construction is expected to wrap in 2024. The property will be called Legacy Lane.

Michael Aushenker
Michael Aushenker
A graduate of Cornell University, Michael covers commercial real estate for the San Fernando Valley Business Journal. Prior to the Business Journal, Michael covered the community and entertainment beats as a staff writer for various newspapers, including the Jewish Journal of Greater Los Angeles, The Palisadian-Post, The Argonaut and Acorn Newspapers. He has also freelanced for the Santa Barbara Independent, VC Reporter, Malibu Times and Los Feliz Ledger.

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