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.
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The full real estate column
is available in the Feb. 20 edition of the Business Journal.
