Pacific Coast Capital Partners LLC has another headquarters tenant for its 12020 Chandler Blvd. office building in North Hollywood.

The El Segundo real estate finance and investment management firm inked a $5.5 million, 65-month lease with Pilgrim Films & Television Inc., a reality television production company.

Pilgrim is consolidating two San Fernando Valley offices into the 36,877-square-foot space, making it the largest North Hollywood relocation this year, according to broker Nico Vilgiate of CB Richard Ellis Group Inc.

The deal follows the move of television market research firm ASI Entertainment Inc. from Glendale to the property.

“Obviously it has been a very challenging year for leasing and it’s the only building (in the market) getting tenants to relocate into it,” said Vilgiate, who represented Pacific Coast Capital. “The landlord understands the market as well as the asset.”

The deal starts in the mid- to low-$2-per-square-foot-per-month range on a full-service gross basis and escalates annually.

Steve Salas of Madison Partners, who represented Pilgrim, believes his client got a good deal.

“This tenant was smart enough to take advantage of the market,” said Salas, adding that Pilgrim got discounted parking and some free rent.

Pilgrim’s space is under construction and should be ready for occupancy in April. Vilgiate said about $2 million will be spent by the landlord and tenant to build it out.

Pilgrim did not return calls seeking comment.

John W. Murray of CB Richard Ellis also represented the landlord; the tenant was also represented by Joe King of Madison Partners.

REIT Goes Public

Griffin Capital, a private El Segundo real estate investment company, went public Nov. 6 with its unlisted real estate investment trust, GC Net Lease REIT Inc.

Unlisted real estate investment trusts are special investment entities that are vastly different from REITs traded on stock exchanges. Public unlisted REITs have a share price that is set by their sponsors and does not fluctuate. They also offer dividends typically higher than their traditional counterparts.

However, the downside is that REITs are not particularly liquid; only 5 percent of GC Net shareholders will be able to redeem their investment in any given year. GC Net has a dividend of 6.75 percent and a share price of $10.

So far the company has raised $4 million from about 20 individual investors and hopes to raise a total of $100 million before the end of next year, said Griffin President Kevin Shields.

“We deliver to investors a competitive risk-adjusted return with low volatility,” said Shields, who also serves as GC Net’s chairman and president. “(It’s) something that allows our investors to sleep at night.”

Griffin jump-started GC Net Lease REIT by contributing about $55 million in real estate assets. The REIT plans to purchase office and industrial properties with single tenants on long-term leases. It is currently looking at acquiring a property in Chicago.

Public unlisted REITs, which also go by the name “untraded” REITs, became a popular investment vehicle during the real estate boom. About $12.5 billion was raised through them in 2007, though there has been a drop since then. Shields said it is expected that about $7 billion will be raised in 2009.

El Segundo Lease

Bugaboo North America Inc., an entity of Amsterdam high-end children’s stroller company Bugaboo International, has moved its corporate headquarters to El Segundo.

Bugaboo signed a five-year lease for a 10,000-square-foot former warehouse building at 1160 E. Mariposa Ave. in October. The deal is valued at $1.2 million and starts at about $1.70 per square foot per month on a triple net basis, according to a source with knowledge of the submarket.

The former warehouse building, owned by LM Pacific Properties, the entity of an unnamed El Segundo real estate investor, is being converted to creative office space. Bugaboo will occupy the property in January once construction of its space is complete. It will include a 1,500-square-foot Bugaboo store.

“We liked that it is a destination place, but it’s also a residential neighborhood and a really interesting pocket of community,” said Kari Boiler, president of Bugaboo North America. “We don’t need the Beverly Hills address.”

In February, the company relocated from New York to Hermosa Beach, where it already had a small satellite office. That office will close once the new space is ready.

Tenant broker Gary Horwitz of Jones Lang LaSalle Inc. said the landlord is funding significant work on the building. The building has a bow truss ceiling that previously had been covered by a lowered ceiling.

Bill Bloodgood of CB Richard Ellis represented the landlord.

Staff reporter Daniel Miller can be reached at or (323) 549-5225, ext. 263.

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