The Alameda Media Center, a single-tenant office building in Burbank, has changed hands for $46.3 million, two years after being sold for about $7 million less.
Chalk it up to the strong Burbank entertainment office market where Lionstone Partners Ltd. was willing to pay about $344 per square foot for the seven-story building at 2901 W. Alameda Ave.
"It's an unbelievable location; it's the nucleus of the global entertainment industry," said Dan Dubrowski, founding partner of the Houston-based commercial real estate investment firm. "It is as strong as we see anywhere in the country and we invest all over the country."
The 137,707-square-foot building is fully leased until December 2016 by Ascent Media Group Inc., a film and television production services company.
The 26-year-old building was sold by MJ Realty Group, who purchased the building two years ago from Douglas Emmett Inc., said Bob Safai of Madison Partners, who brokered that deal and both sides of the most recent transaction.
"It is a fairly good deal for the marketplace," said Safai, adding that the building is unique because it is equipped with backup electrical systems and satellite access. "The deal tells you how healthy and vibrant the Burbank market is there will always be a demand for quality assets."
The Graciela Burbank, a 99-room boutique hotel in the Burbank Media District that caters to entertainment business travelers, has been sold.
LaSalle Hotel Properties has purchased the hotel at 322 N. Pass Ave. for $36.5 million from Pass Avenue Associates LLP and ZBH LP, entities of local real estate development and investment firm Probity International Corp.
The deal breaks down to about $369,000 per room, said John Strauss of Jones Lang LaSalle Hotels, which is not associated with the buyer. "It's a one of a kind boutique luxury hotel in Burbank," said Strauss, who represented the seller.
As part of the deal, the seller included a 7,270-square-foot adjacent vacant property that is entitled for a spa, swimming pool and restaurant.
The buyer represented itself in-house.
Los Angeles area apartment deals continue to demonstrate the strength of the city's rental market.
A nine-property bundle called the Cypress Portfolio, with apartment properties ranging in size from 29 to 98 units, has been sold for $37.45 million. The portfolio includes a total of 494 units in properties in Los Angeles' Koreatown, Hollywood, Silverlake and Westlake.
The sale closed on Dec. 28, with New York-based Apollo Real Estate Advisors LP purchasing the buildings from the partnership of Cypress Equity Investments and Pacific Coast Capital Partners LLC. The deal breaks down to an average price of $75,800 per unit.
Darin Beebower of Madison Partners said the deal was an opportunity for Apollo, an international real estate fund manager, to jump start its Los Angeles portfolio.
"It is about 500 units it is difficult to do that in L.A., to step into L.A. with that as a starting point," said Beebower, who represented both sides of the deal with Safai.
The largest apartment building in the portfolio is a 98-unit building located at 847 S. Alvarado St. Safai said Apollo will have the ability to add value to its property as rents continue to climb in Los Angeles.
El Segundo Deal
Jamison Properties Inc. has purchased Grand Avenue Plaza, a two-building office property in El Segundo.
The Los Angeles company operated by Korean real estate investor Dr. David Lee paid $13.4 million for the two four-story buildings. Jamison purchased the building from West Los Angeles-based Arden Realty Inc., which has sold 13 assets in the last two months.
The plaza at 1970 and 1990 E. Grand Ave. is 99 percent leased with tenants that do business at or near Los Angeles International Airport, said Jon Nesbitt of Grubb & Ellis Co. The deal for the 81,765-square-foot plaza breaks down to about $164 per square foot.
"I think this was a really good buy for Jamison," said Nesbitt, who represented Arden. "The two most recent sales in the market were at $220 a foot and another at $320 for nicer properties."
Arden's rush of dispositions comes in the wake of GE Real Estate's acquisition of the company in May. Arden has also done about $300 million in acquisitions in the past month, according to an official at the company.
Bob Griffith of Grubb & Ellis and Eric Lastition of Colliers Seeley International Inc. also represented Arden. Jamison represented itself in-house.
Staff reporter Daniel Miller can be reached at firstname.lastname@example.org . or (323) 549-5225, ext. 263.
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