BURBANK, CA—Worthe Real Estate Group has sold two trophy office properties in Burbank's Media District in two separate transactions totaling $48 million, illustrating a strong demand for quality office properties in the market. The properties to trade hands are 4444 Lakeside Drive, which Hayman Advisors purchased for $18 million, and 3300 Riverside Drive, which an unnamed buyer purchased for $30 million, at a 5.5% cap rate.

“Both of these buildings show a desire for investors to buy trophy assets in great locations,” Bob Safai, a broker at Madison Partners, tells GlobeSt.com. “The market can go up and down, but the entertainment business keeps us smiling throughout the ups and downs. These are both really good entertainment companies, so these transactions say a lot not just about real estate but about the future of the entertainment business.” Safai represented the seller in both transactions along with his Madison Partners' colleagues Matt Case and Brad Schlaak. 

The 4444 Lakeside Drive property is a 37,302-square-foot three-story office building. It was originally built in 1984 for the Disney Family's private investment firm Shamrock Investments, which occupied the property for 30 years. The property is currently 100% occupied by Warner Bros. Entertainment. “We had a half-dozen qualified buyers who were closely knit together in pricing,” says Safai. “We ultimately went with an exchange buyer, who liked the market, Warner Bros. and the building because it is a very unique, cool building.”

The 3300 Riverside Drive property is a 55,000-square-foot property, and it is 100% occupied by New York Film Academy through 2028. The property was also built in 1984 and it was built for Warner Bros. “The location here is also amazing. It is 100 feet from the Warner Bros. Studio,” says Safai. “When we put it on the market, we got over a dozen offers, and again, chose an exchange buyer that was really good as far as timing and price.”

“Both of these were win-win transactions; win for the buyers because they bought quality assets with quality tenancy, and a win for the sellers because they were looking to monetize the assets and were able to find the right buyers,” Safai explains. “It's harder to do a win-win transaction, and I feel good that we accomplished that here.”