Walt Disney Co. has leased 110,000 square feet at Burbank’s Buena Vista Plaza in an 11-year deal valued at $51.5 million, according to a source familiar with the transaction.
The entertainment giant has long been the dominant tenant in the 118,000-square-foot building at 2411 W. Olive Ave., which is a block from the company’s 2 million-square-foot headquarters campus at 500 Buena Vista Ave. Partners Federal Credit Union, which serves Disney employees from its ground floor location, is the only other tenant at the Olive Avenue building.
Disney has leased the majority of the building for more than a decade, but it had staggered expiration dates on full floors, the source said. After the company’s lease on the two top floors of the seven-story building expired last December, it decided to recast its lease for the entire building rather than renew it piecemeal.
The large deal, which was signed May 1, is significant but does not affect the Burbank vacancy rate, since the building was already fully leased.
Brokerage Charles Dunn Co. Inc. is the primary leasing company for landlord Tier REIT Inc. of Dallas, a private real estate investment trust that purchased the Olive Avenue property for $33 million in 2005, according to real estate data provider CoStar Group Inc.
“The landlord, Buena Vista Plaza LP, retained our firm to market the top two floors of the building early last year,” said Linda P. Lee, senior managing director in Charles Dunn’s Glendale office. While she would not comment on the lease deal, she said, “We can confirm we suspended our marketing of those floors in the first quarter of this year.”
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