“We have been eagerly looking to invest in the Burbank Media District office market, and 2600 Olive is a great start” Philip Orosco, founder of Pacshore Partners, said in a statement. “Granite has done a fantastic job of managing and modernizing the asset, and we look forward to continuing down that path.”
Pacshore Partners plans to keep improving the property by modernizing tenant spaces.
Pacshore Partners was founded in 2012 and invests in office and mixed-use properties in Southern California where it can add value to the properties. It does not have other assets in Burbank but owns properties in Malibu, West L.A. and Santa Ana.
Newmark Group Inc.’s Kevin Shannon, Ken White, Rob Hannan, Laura Stumm and Michael Kolcum represented Granite Properties in the transaction.
Granite Properties acquired 2600 Olive in 2014 and invested $2.7 million to renovate the property, including its lobby, elevators and bathrooms. The company also added clean air technology.
“Granite has owned and managed 2600 Olive for seven years,” Jason Purvis, Granite Properties’ senior managing director, said in a statement. “During that time, we’ve made significant updates to enhance the customer experience. The property has benefited from the thriving entertainment industry in the Burbank Media District and growing demand for media content.”
The building is 97% leased and counts media-related companies among its tenants. Burbank is known for being a media hub with companies like Warner Bros. and Walt Disney Co. among its largest inhabitants.
In the third quarter of the year, the Burbank office market saw a vacancy rate of 7.4%, the lowest of any market in L.A., according to data from Jones Lang LaSalle Inc. The asking rate for Class A properties was $4.32 a square foot, up 57 cents in a year, according to JLL data.
“If anybody ever doubted the resiliency of the entertainment industry or its status as L.A.’s guiding light, the pandemic has erased any hesitation, and Burbank is exhibit 1-A,” Hannan said in a statement. “As the epicenter and backbone of L.A.’s expansive entertainment infrastructure, Burbank has benefited tremendously from the explosive growth of content providers, streaming or otherwise.”
