Worthe Real Estate Group and PCCP LLC have entered into a joint venture and closed on the $109 million acquisition of Tower Burbank, located at 3900 W. Alameda Ave. in Burbank, CA. BlackRock, Inc. sold the asset at approximately $224 per square foot.
The 32-story, 486,972-square-foot, 4-Star office building was constructed in 1989 on 1.4 acres in Los Angeles County. Located within the Burbank Media District, the LEED Gold-certified property is the tallest building in Burbank and covers an entire city block. It features numerous amenities, 10 elevators, a nine-level parking garage, and is close to restaurants, shopping, hotels, transportation. In addition it is connected to Burbank's 144-Strand Fiber Optic Infrastructure.
"This was a great opportunity for us to acquire this trophy property at significantly below replacement cost," said Ron Bonneau, vice president with PCCP, LLC. "Many consider Burbank to be the media capital of the world with three major studio lots located in the area. The studios are big drivers in the market, with many companies wanting to be in close proximity to them."
At the time of sale the asset is almost completely vacant, with available space there listed with CBRE. It was previously occupied by a division of Walt Disney Company until early 2013.
New ownership plans to update and rebrand the property with contemporary and creative improvements to the lobby and exterior, which could see the addition of a tenant-only health club and ground-floor cafe.
"We believe the upgrades to the building will provide a unique opportunity to reintroduce the asset to the market for multi-tenant users seeking a high-profile location," added Bonneau.
Reportedly both parties handled the direct sale in-house.
Please see CoStar COMPS #2982512 for additional information on this transaction.