The Burbank Airport Center has changed hands for $19.8 million, or about $220 a square foot.
The 90,000-square-foot office building at 2550 Hollywood Way was purchased by Atlantic Pearl Investments Inc. of West Hollywood from a group of Los Angeles investors who acquired the building in 2007, at the peak of the real estate market, and took a loss on its sale.
Unilev Capital Group of Beverly Hills, Elco Lighting of Vernon and Legend Real Estate Management Inc. and South Park Group Inc., both of Los Angeles, paid nearly $28.3 million – or about $314 a square foot – for the building eight years ago, according to real estate data provider CoStar Group Inc. They put it on the market early this year for $24 million.
Located at the corner of Empire Avenue and North Hollywood Way, the Airport Center is the closest office building to the airport and runs a shuttle service to and from there and the Metrolink rail station two blocks away. The property, which shares a campus with the Marriott Hotel & Convention Center, is 68 percent leased to tenants including Terry Hines & Associates, Neurobrands, California Federation of Teachers and Accent Home Health Care.
The six-story office building dates to 1983 and has been renovated twice, in 2000 and last year, according to CoStar.
Los Angeles brokerage CBRE, which handled the listing, marketed it as a repositioning opportunity for a landlord looking to offer creative space to media and entertainment tenants who want to be close to the Burbank and Hollywood studios. About 35 percent of the existing leases in the building are set to expire in the next two years, with rents currently about 15 percent below market rate, CBRE said in its marketing materials.
Ken White, Michael Longo and Kevin Shannon at CBRE handled the deal, which closed Sept. 10. Atlantic Pearl Investments also owns two Glendale office buildings in the 1000 block of Grandview Avenue and the Westwood LaGrange Plaza at 1990 Westwood Blvd in Los Angeles, according to CoStar.
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