Santa Monica developer M. David Paul & Associates Inc. has put a 1.4-million-square-foot portfolio of Burbank office buildings on the market that could fetch upwards of $600 million.
M. David Paul has put up three office properties: Media Studios North by Bob Hope Airport, Central Park at Toluca Lake and the second phase of the Pinnacle office complex in the Media District.
Two of the projects the Media Studios North and Pinnacle’s phase II recently signed large leases. The properties are stabilized and fully leased.
Warner Brothers Entertainment signed a 15-year lease for the entire 230,000-square-foot Pinnacle phase II worth $100 million. And Yahoo Inc. subsidiary Overture Inc. inked a $100 million deal for two build-to-suit corporate headquarters with a cumulative 350,000 square feet at the Media Studios North.
While the marketing books haven’t been sent out yet, Eastdil Secured the brokerage hired to sell the buildings has been talking to a number of potential buyers.
Eastdil Secured brokers didn’t return calls seeking comment on the listing. A call to M. David Paul & Associates seeking comment on the sale also wasn’t returned.
Two years ago, a partnership of M. David Paul & Associates and Stockbridge Capital Partners LLP sold the Pinnacle phase I to German fund manager RREEF Funds LLC for $145 million.
Stockbridge, a San Mateo-based real estate investment firm that recently bought the Hollywood Park racetrack in Inglewood, also has a large stake in the Pinnacle’s second phase.
Even though M. David Paul & Associates is selling the bulk of its completed projects, the firm will retain two substantial development sites.
The company will still have a parcel at the Media Studios North site and a 9-acre parcel at Bob Hope Drive and W. Alameda Avenue that the company bought from General Electric Co. for $55 million.
The M. David Paul & Associates listing was first reported in trade newsletter Real Estate Alert.
Switching Sides
One of Grubb & Ellis’ top national brokers has bolted the firm for CB Richard Ellis Group Inc.
Kevin Shannon, Grubb & Ellis’ top-performing broker nationally for the last three years, is moving his sales team which includes Scott Schumacher, Paul Perkins, Michael Moore, Ryan Plummer and Lorie Armendariz to CBRE’s South Bay office.
The move will help CBRE bolster its sales and investment business in the face of increased competition from the merger of Eastdil and Secured Capital Corp., which is now Eastdil Secured.
“After Eastdil and Secured merged, it seems like the trend in the industry is going to be consolidation,” Shannon said, “and I think CBRE has the top, complete platform out there.”
Lewis C. Horne, the executive managing director of CBRE’s greater Los Angeles office, said the L.A.-based brokerage has been interested in Shannon and his team for several years and had been talking with them on and off during that time period.
Horne said Shannon’s expertise and contacts in the South Bay and in Orange and San Diego counties will match up well with CBRE’s existing L.A. staff of sales brokers.
“Kevin has the ability to team well with others,” Horne said. “We look at this as creating a synergy. He comes to us with tremendous relationships and a tremendous reputation.”
CBRE has been relying heavily on Senior Vice President Thomas P. Bohlinger for much of its sales business in the L.A. region. That has especially been the case since top CBRE brokers Lawrence Krasner and David Doupe bolted to Jones Lang LaSallle.
“I’m sure Tom and I will be working together on projects,” Shannon said. “I’m really looking forward to working with all the investment brokers. There’s a lot of talented people at CB.”
Shannon is also coming to CBRE as one of its ranking brokers. The company gave Shannon a title of vice chairman the highest rank bestowed on anyone in the marketing and sales staff. There are about 2,200 brokers working at CBRE and fewer than 20 have the same rank as Shannon.
Shannon remains positive about his years at Grubb & Ellis. “We had an amiable parting of the ways,” Shannon said. “Grubb was a great experience, the people are wonderful and I had a lot of success.”
Moving Up
A branch of UBS Securities LLC is renewing its 34,000-square-foot lease at 1999 Avenue of the Stars in a deal worth about $16 million.
The subsidiary of UBS AG Switzerland’s largest bank is close to signing a 10-year renewal at the Century City tower, known as AIG SunAmerica Center.
While the firm is taking the same amount of space in the building, it’s moving up to the 34th and 35th stories from its current perch on the 21st and 22nd floors.
By moving to the higher floors, UBS Securities will be able to design the office to better fit its needs, said Gary Weiss, a principal at Madison Partners who represented the tenant.
The landlord, Equity Office Properties Trust, was represented internally by David Hitzel, the building’s director of leasing.
*Staff reporter Andy Fixmer can be reached by phone at (323) 549-5225, ext. 263, or by e-mail at
[email protected]
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