Legacy Partners is out and a local developer is in to develop the site of a former police station in Burbank.
The 3.5-acre site is across from City Hall in the heart of Burbank, a block bordered by Olive and Angeleno avenues, Third Street and San Fernando Boulevard.
The city has ceased talks with Legacy and shifted instead to Cusumano Real Estate Group, confirmed Ruth Davidson-Guerra, project manager for the redevelopment agency.
The decision came when Legacy slashed its offer to buy the land to $5.4 million from $13 million, Davidson-Guerra said. Though Cusumano's offer is slightly less, at $5 million, the new proposal has some competitive advantages, Davidson-Guerra said. Those include more restaurants and a public plaza that flows better with nearby retail at Burbank Village.
The city might still opt to put the project out for bid again. Legacy officials did not return calls for comment.
The site is the same place where Regent Properties once proposed to build a hotel, movie theater and 200,000 square feet of office space. With the capital markets cool on hotel construction, both Legacy and Cusumano proposed luxury housing instead of hotel rooms, and reduced the office component to roughly 100,000 square feet.
Cusumano has developed a large amount of low-rise office and multi-family housing, including four projects with the city.
Glendale Eyes Developers
In nearby Glendale, city policymakers will look at five developers this week who have shown interest in developing a mixed-use project on 12 acres next to Glendale Galleria.
Although 15 developers responded to a city request for qualified developers for the project, City Council members will focus on five development teams Dec. 12: Caruso Affiliated Holdings/Legacy Partners, Post Properties/Cousins Properties, J.H. Snyder Co., Lennar Urban Develop-ment Group, and Regent Properties.
The city gave developers a broad window to propose a mixed-use project, Glendale Town Center, that emphasizes public space and could include retail, housing, office, hotel or similar uses, said Philip Lanzafame, the city's assistant director of development services.
The property, which is partially owned by the city's redevelopment agency, is south of the Glendale Galleria. It's bounded by Brand Boulevard, Colorado Street, and Orange Street.
"We think it's the big finale to our downtown," Lanzafame said.
More Brokerage Mergers
Two more brokerages have made the move to consolidate: Cushman & Wakefield has bought Matlow-Kennedy Commercial effective Jan. 1. The deal will triple Cushman & Wakefield's broker presence in the South Bay, especially in the industrial sector, said Joseph Vargas, C & W;'s managing director for Southern California.
The news comes just a week after former Matlow-Kennedy Commercial chairman and CEO Gregory Gill made the jump to head up the first Southern California offices of New York-based Newmark & Co. Real Estate Inc. Steve Kolsky, former corporate service director from Matlow-Kennedy, also joined Newmark as a principal. Newmark & Co. is expected to open offices in the South Bay and Orange County.
Meanwhile, Westmac Commercial Brokerage is merging into Coldwell Banker Commercial, an offshoot of franchising giant Cendant Corp. and sister company to Coldwell Banker Residential Brokerage Co., which just recently acquired Fred Sands Realtors.
The deal marks the return of the Coldwell Banker Commercial brand to the L.A. markets.
San Gabriel Valley Lease
CCK Sports Foundation has subleased 51,500 square feet at the San Gabriel Valley Corporate Center in Irwindale, in a 10-year deal with Washington Mutual Inc.
The center had been the headquarters of Home Savings of America until Washington Mutual bought that thrift. Home Savings had sold three of the four buildings to Metropolitan Life Insurance Co., which leased back the space that Washington Mutual has leased to CCK.
The value of the CCK sublease is $10 million.
The 861,000-square-foot center once seemed slated to become the single-tenant home to EarthLink Network Inc. That changed when Mindspring bought EarthLink, but retained the name of the acquiree.
Still, fed by spillover of space-hungry tenants from Pasadena, the center has attracted technology tenants such as Lucent Technologies and Unisys.
Aaron Ely and Ron Heim of Trammell Crow Co. represented CCK. Jonathan Larsen of Trammell Crow represented Washington Mutual.
Jonathan Larsen also represented insurance company Gerald J. Sullivan & Associates Inc. in a move to merge its offices downtown. The company signed a seven-year, $2.85 million lease for 17,796 square feet for space on the top floor and the 17th floor of the Pacific Financial Center, at 800 W. Sixth St. Owner Capital & Counties USA Inc. was represented by John Anthony and Daniel Cherrie of Charles Dunn Co.
In another deal, Banker's Trust, a Deutsche Bank company, signed an 11-year lease for 72,000 square feet at California Plaza, 300 S. Grand Ave.. Owner Metropolitan Life was represented by John McAniff of Cushman & Wakefield. The tenant was represented by John Ghiselli and Eric Duncanson of Julien J. Studley Inc.
And in yet another downtown deal, WeddingChannel.com signed for 14,000 square feet at International Tower, 888 Figueroa St. Charles Dunn Co.'s Anthony and Cherrie represented owner South Park Associates Inc., while Charlie Smith of CB Richard Ellis represented the tenant.
Staff reporter Milo Peinemann can be reached at firstname.lastname@example.org.
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