BURBANK, CA—A new joint venture between PCCP LLC and the Worthe Real Estate Group has acquired the Tower Burbank at 3900 W. Alameda Ave. in Burbank. The joint venture would not disclose the purchase price, however, industry sources unrelated to the deal estimate they purchased the building for $109 million.
“This was a great opportunity for us to acquire this trophy property at significantly below replacement cost,” says Ron Bonneau, VP 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.”
Tower Burbank is a 32-story, 486,972-square-foot LEED-Gold certified office building in the Burbank Media District. The Walt Disney Co. had occupied the full building until early last year. Since the company vacated the property, it has sat vacant. The new owners plan to renovate the property. According to Bonneau, the renovation plans include updates to the lobby and exterior and additions, like a private tenant health club and café. “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.” Bonneau says.
Industry sources noted an even more dramatic overhaul that would transform the traditional space in to a creative office space to appeal to both traditional users and those in the surrounding media industry.
There are many examples of the Burbank Media District’s strong fundamentals. To boost leasing confidence, for example, owners of the Pointe recently secured $220 million through Mesa West refinance the property and complete tenant improvements.