Despite the city's flat leasing market, the LaSalle purchase shows that investors continue to pay top dollar for Glendale office buildings. LaSalle is paying about $345 a foot for the 15-story white-and-black checkered property.
The 338,310-square-foot building, which opened in 1992, is 84 percent leased. Asking rents are between $2.45 and $2.55 a foot, according to commercial real estate tracking firm CoStar.
Last week, Des Moines pension fund adviser Principal Global Investors LLC agreed to pay Tishman Speyer Properties Inc. about $110 million, or $314 a foot, for 101 N. Brand Blvd., a 350,000-square-foot tower. The lower price reflects the building's higher vacancy levels.
At the end of June, Glendale's office buildings were, on average, 14.4 percent vacant and the premier buildings had asking rents of $2.43 a foot, according to Grubb & Ellis Co. Glendale's average vacancy rate is higher and the asking rents lower when compared to the countywide average.
CB Richard Ellis' Tom Bohlinger represented both sides in the sale of 505 N. Brand Blvd. Bohlinger declined comment.
Meanwhile, real estate activity remains strong in Burbank and Pasadena which, along with Glendale, makes up the Tri-Cities submarket.
Kennedy Associates Real Estate Counsel Inc. is selling its 155,000-square-foot office building at 2950 Hollywood Way in Burbank. The office building, named IDT Entertainment Plaza after its main tenant IDT Entertainment Inc., is 80 percent leased.
Bohlinger, who has the listing, said there are pending leases that could fill the remaining vacant space. "The (Burbank) market has been on fire," he said. "Though it's not fully leased, we have proposals from tenants that would shortly take up the remaining space."
The project, formerly called Burbank Airport Plaza, was completed in 2001 by Kennedy and Trammell Crow Co.
In Pasadena, IDS Equities LLC is buying a 67,000-square-foot building at 80 S. Lake St. from Davenport Partners Inc. for about $19.3 million. The 38-year-old building, at the corner of Lake Avenue and Green Street, is 95 percent occupied, mostly by smaller tenants. A Wells Fargo & Co. branch occupies the ground floor.
IDS Equities is being backed with money from the California State Teachers Retirement System.
Leaving Santa Monica
Law firm Van Etten Suzumoto & Becket LLP has signed an 11-year lease for 50,000 square feet at 1800 Century Park East in Century City worth nearly $25 million.
For the last six years, the law firm had been leasing two non-contiguous floors in the Water Garden complex in Santa Monica. The new space comprises three floors connected by an internal stairwell. Van Etten Suzumoto & Becket expects to relocate to its new Century City address beginning in February 2006.
The building is owned by a California State Teachers Retirement System fund managed by CBRE Investors.
The landlord was represented by Annie Kodak, Kevin O'Donnell and Stan Gerlach of CB Richard Ellis. Van Etten Suzumoto & Becket was represented by Robert Chavez of Guardian Commercial Realty.
*Staff reporter Andy Fixmer can be reached by phone at (323) 549-5225, ext. 263, or by e-mail at firstname.lastname@example.org .
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