A two-property office building portfolio off the 5 Freeway in Burbank has traded hands for more than $80 million. The buildings, at 2400 and 2350 Empire Ave., total nearly 230,000 square feet and are fully leased.
The portfolio was purchased by UBS Realty Investors LLC of Hartford, Conn. from CBRE Global Investors Ltd. of downtown Los Angeles, according to real estate data provider CoStar Group Inc. Eastdil Secured LLC was the broker on the deal.
The 2350 Empire address comprises 99,000 square feet and sold for $34 million, or about $345 a square foot. The 2400 Empire building consists of nearly 131,000 square feet and sold for $46 million, or roughly $353 a foot. The transaction closed Aug. 10, according to CoStar.
Deluxe Digital Studios LLC, a post-production service owned by Deluxe Entertainment Services Group Inc., occupies more than half the total space in the two buildings. Allianz Insurance and Fireman’s Fund Insurance Co. are also major tenants.
The 18-acre office park was developed in 2002 by Menlo Equities of Palo Alto as part of the 103-acre Burbank Empire Center. The property, which once housed aerospace giant Lockheed Martin Corp., now includes 1.4 million square feet of retail and hotel space as well as the two office buildings.
CBRE bought the two buildings in 2005 from Menlo Equities for an undisclosed amount.
Guess Sinks on Slipping Sales
Downtown L.A. fashion designer and retailer Guess Inc. on Wednesday reported a drop in sales for the second quarter, but still beat analysts’ earnings expectations.
The company said it earned $18 million, or 21 cents a share, for the quarter, down from $22 million a year ago. The company saw sales fall 10 percent to $546 million, down from $609 million a year ago.
Still, the company beat expectations. Analysts expected earnings of 15 cents a share on sales of $539 million. Nevertheless, shares fell following Wednesday’s post-close announcement. Shares were down 4 percent to $20.40 in after-hours trading.
The company expects sales to continue falling in the current quarter, citing the impact of the strong U.S. dollar. Much of the denim maker’s sales are overseas.
The company last month replaced cofounder and chief executive Paul Marciano with Victor Herrero, who was head of Asia Pacific for Spanish fashion distributor Inditex Group.
