North Hollywood Commercial Real Estate Sees Strong Growth with Major Property Sales
The Burbank Empire Center has sold for over $133 million, as reported by CoStar Group Inc.
The 350,000-square-foot, Class A office at 2300 W. Empire Ave. transacted in the range of approximately $380 per square foot to New York Life Real Estate Investors in San Francisco, the real estate company of a subsidiary of New York Life Insurance Co. Walton Street Capital, a Chicago-based private equity firm, was the seller.
Walton Street purchased the building initially back in 2011 for $45 million, just shy of $129 a square foot. The latest sale represents a profit of almost 196 percent, demonstrating the health of the Burbank and North Hollywood Commercial Real Estate market.
Another Class A office building, although smaller and older, changed hands recently in North Hollywood as well. Beacon Capital Partners purchased the 197,000-square-foot property at 5161 Lankershim Blvd. in May for $69 million, or almost $350 a square foot. This sale shows the ongoing investor faith in North Hollywood Commercial Real Estate, where quality office space is in strong demand.
Occupants of the Burbank Empire Center, built in 2009, include Cast & Crew Entertainment Services, the largest tenant, that has been leasing space there since 2011. Earlier this year, the company grew by leasing another 20,000 square feet, for a total of almost 90,300 square feet. Other occupants include Point.360 and Modern VideoFilm, making the property even more well-known as a center for media and entertainment companies.
As these deals show, Burbank and North Hollywood Commercial Real Estate remain attractive to big investors because of their high rental demand and favorable location in the San Fernando Valley. For further insights and opportunities within the market, contact dmcinvestments.